THE  FIRST  NATIONAL  BANK 
OF  CHICAGO 


'''"■'  ."■   .^  ••  -tl*"!  iria  isa  J^  »*r  «-_  _ 


THE  NEW  BUILDING 

As  projected,  from  arcbitect's  drawings. 


THE    HISTORY 


OF 


THE  FIRST  NATIONAL  BANK 


OF 


CHICAGO 


PRECEDED  BY  SOME  ACCOUNT  OF  EARLY  BANKING  IN 

THE  UNITED  STATES,  ESPECIALLY  IN  THE 

WEST  AND  AT  CHICAGO 


Issued  upon  the  occasion  of  the  expiration  of 
its  Second  Charter, 


HENRY   C.    MORRIS 

UNDER  THE  AUTHORITY  OF  THE  PRESIDENT  AND 
THE  BOARD  OF  DIRECTORS 


CHICAGO 

R.  R.  DONNELLEY  &  SONS  COMPANY 
1902 


Copyright,  1902 

By  henry  c.  morris 


OFFICERS   OF   THE    FIRST  NATIONAL 
BANK    OF    CHICAGO 


President: 
james  b.  forgan 

Vice-Presidents  : 

david  r.  forgan  george  d.  boulton 

howard  h.  hitchcock 

Cashier  : 
richard  j.  street 

Assistant  Cashiers  : 

holmes  hoge  august  blum 

edward  dickinson  frank  e.  brown 

CHARLES  N.  GILLETT 

Auditor  : 

FRANK  O.  WETMORE 


FOREIGN  EXCHANGE  DEPARTMENT 
Manager:  Assistant  Manager 

JOHN  E.  GARDIN  MAX  MAY 

BOND  DEPARTMENT 
Manager : 

EMILE  K.  BOISOT 


Attorney : 

ORVILLE  PECKHAM 


Directors 


SAMUEL  W.  ALLERTON 
JOHN  H.  BARKER 
ADOLPHUS  C.  BARTLETT 
GEORGE  D.  BOULTON 
WILLIAM  L.  BROWN 
D.  MARK  CUMMINGS 
DAVID  R.  FORGAN 
JAMES  B.  FORGAN 


Assistant  Attorney 

JAMES  D.  WOLEY 


ELBRIDGE  G.  KEITH 
SAMUEL  M.  NICKERSON 
EUGENE  S.  PIKE 
NORMAN  B.  REAM 
GEORGE  T.  SMITH 
JOHN  A.  SPOOR 
WILLIAM  J.  WATSON 
OTTO  YOUNG 


20030G4 


PREFACE 

The  purpose  of  this  volume  is  more  comprehensive 
than  at  first  glance  may  perhaps  be  apparent.  The 
story  of  any  institution,  organized  under  the  provi- 
sions of  general  legislation,  must  necessarily  be  com- 
paratively uneventful.  All  national  banks,  created  and 
performing  their  functions  by  virtue  of  the  same  act, 
naturally  have  a  striking  family  resemblance;  still  in 
many  features  they  may  be  differentiated.  The  larger 
corporations  of  the  cities,  on  account  of  the  volume 
of  their  business  and  the  influence  which  they  recip- 
rocally exert  upon  the  communities  in  which  they 
exist,  form  a  distinct  class.  Of  them,  again,  a  group, 
claiming  the  greatest  financial,  commercial,  and  indus- 
trial centers  of  the  country  as  their  domicile,  merit 
special  notice.  Their  welfare  is  closely  identified  with 
the  prosperity  of  the  nation;  their  progress  measures 
the  development  of  its  material  resources,  and  every 
disturbance  in  their  constitution  is  felt  throughout 
the  entire  economic  fabric  of  the  land.  As  one  of  the 
most  important  among  these  leaders,  the  First  National 
Bank  of  Chicago  has  achieved  universal  recognition. 
Not  only  the  magnitude  of  its  transactions,  but  like- 
wise its  uniform  success,  and  the  uniqueness  of  many 
of  the  details  of  its  management,  distinguish  it  as  a 
model  product  of  the  National  Banking  Act.    As  a  typi- 

vii 


viii  Preface 

cal  illustration  of  the  results  effected  by  the  activities 
of  modern  finance  it  is  noteworthy.  In  this  aspect 
especially,  its  history  can  be  studied  with  admiration 
and  profit ;  its  record  will  always  stand  as  a  substan- 
tial monument  to  the  wisdom,  prudence,  and  good 
common  sense  of  the  men  who  have  directed  its  inter- 
nal economy ;  its  career  will  also  ever  be  remarkable  as 
that  of  the  sturdy  champion  of  the  highest  ideals,  and 
the  constant  promoter  of  the  best  methods  in  the 
science  of  banking. 

The  national  banking  system  itself  is  the  conse- 
quence of  long  and  strenuous  efforts  on  the  part  of 
the  most  experienced  financiers  of  past  generations. 
The  struggle  to  secure  honesty,  efificiency,  and  per- 
manency in  the  banking  institutions  of  the  United 
States  has  been  arduous;  the  phases  of  the  contest 
have  been  as  numerous  as  varied.  The  growth  of 
sound  economic  views  in  this  country  from  the  germs 
of  their  origin  is  of  peculiar  interest.  To  sketch  this 
development  briefly  in  connection  with  the  narrative 
of  one  of  the  most  influential  factors  in  the  financial 
body  of  the  nation,  it  is  believed,  will  not  be  without 
value;  it  should  prove  an  inspiration  to  the  mainte- 
nance, improvement,  and  evolution  of  the  existing  pro- 
visions of  law.  With  these  views  this  volume  has 
been  prepared. 

To  the  reader  many  inferences  may  be  suggested ; 
some  few  deductions  which  it  is  thought  will  naturally 
be   drawn    alone   are   presented.     The   most    evident 


Preface  ix 

effect  of  the  lengthy  endeavor  to  solve  the  banking 
problem  is  the  slow  but  regular  movement  toward  a 
uniform  system.  The  tendency  in  financial,  not  less 
than  in  political,  affairs  in  the  United  States  has  been 
toward  centralization,  without  at  the  same  time  the 
sacrifice  of  individuality;  the  concentration  of  the 
responsibility  in  the  hands  of  a  few ;  the  unification 
of  the  interests  of  different  sections  of  the  land  and  of 
all  classes.  With  this  amalgamation  of  industrial  and 
commercial  enterprise  the  banking  power  of  the  coun- 
try has  been  obliged  to  keep  pace ;  and  with  this  pro- 
gress additional  strength  has  been  achieved.  From 
institutions  adequate  to  the  needs  of  the  state  and  of 
the  nation  there  has  been  a  steady  advance,  until  now 
there  is  not  lacking  desire  nor  ability  to  serve  the 
wants  of  other  poorer  peoples,  and  to  engage  in  pro- 
jects of  world-wide  scope. 

Another  improvement  of  not  less  vital  concern  to 
the  domestic  economy  of  the  community  is  the  sepa- 
ration of  banking  and  politics.  The  old-time  existing 
opinion  that  the  one  was  coincident  with  the  other 
has  been  dissipated.  The  early  discussions  of  finance 
not  only  in  America,  but  elsewhere,  were  largely  sub- 
ject to  the  bias  of  partisanship.  That  faction  which 
controlled  the  forces  of  the  national  bank,  as  it  then 
was  organized,  had  a  strong  advantage  in  every  cam- 
paign. The  debates  in  1 862-64,  ^t  the  time  of  the  adop- 
tion of  the  National  Banking  Act,  reveal  the  prevail- 
ing fear  that  a  vast  political  engine  was  being  planned; 


X  Preface 

that  the  Comptroller  of  the  Currency  would  become 
the  most  powerful  officer  in  the  country,  and  that  he 
would  prostitute  his  position  to  political  ends.  How 
groundless  these  misgivings  were,  the  subsequent  his- 
tory of  nearly  forty  years  has  shown.  The  divorce 
between  banking  and  politics  is  complete. 

The  inauguration  of  the  national  system  was  only 
the  first  step  in  the  introduction  of  safe  and  sound 
economic  theories.  Uniformity  in  banking  has  inevi- 
tably been  a  lesson  of  prime  importance  to  the  people. 
Slowly  and  almost  unconsciously  they  have  been 
taught  that  honesty  in  monetary  legislation  and  abso- 
lute protection  against  the  schemes  and  projects  of 
unscrupulous  speculators  are  the  foundation-stones  of 
material  prosperity ;  starting  from  these  principles,  and 
steadily  erecting  the  superstructure  in  the  same  spirit, 
they  have,  under  these  influences,  won  the  respect 
and  admiration  of  rival  powers. 

In  this  brief  outline  it  is,  of  course,  only  possible 
to  present  the  slightest  sketch  of  these  developments. 
For  the  general  historical  portion  of  the  work  the 
author  is  indebted  for  the  requisite  data  to  many 
standard  treatises;  for  the  story  of  the  First  National 
Bank  itself,  he  has,  through  the  kindness  of  the  ofifi- 
cers,  had  access  to  the  original  records;  while  finally, 
the  material  for  the  biographies  has  been  mostly  sup- 
plied him  at  first  hand.  To  the  representatives  of 
the  bank,  and  to  all  others  who  have  aided  in  the 


Preface  xi 

preparation  of  the  book,  for  their  manifold  courtesies, 
encouragement,  and  help,  he  desires  to  tender  his  sin- 
cere thanks.  May  this  little  volume  serve  some  good 
end  in  the  domain  of  which  its  subject  forms  a  part ! 

Henry  C.  Morris. 

Chicago,  June  i,  1902. 


CONTENTS 

PART    I 

GENERAL   BANKING   HISTORY 

CHAPTER  PAGE 

I.  Early  Banking  in  the  United  States  -        -       3 

II.  Western  Banking  under  State  Laws    -  -          19 

III.  The  Inception  of  Chicago  Banking    -  -       -      26 

IV.  The  National  Banking  Act       -       .       .  .         36 

PART   II 
HISTORY  OF   THE   BANK 

V.    History  of  the  First   National  Bank  under 

its  First  Charter  (1863-1882)      ...        -      49 
VI.    History  of  the  First  National  Bank  under 

ITS  Second  Charter  (1882-1902)      -       -       -          76 

PART    III 
VII.    The  Union  National  Bank 107 

PART    IV 

VIII.    The  Metropolitan  National  Bank        -       -        117 

PART    V 
IX.    The  New  Bank  Building 125 

PART    VI 
Biographical 133 


Contents 


PART   VII 

APPENDICES 

CHAPTER  PAGE 

1.  List  of  Members   of  the   Board   of   Directors 

(1863-1902) 193 

2.  List  of  Officers  Since  1863 194 

3.  Statement  Showing  Dividends  Declared      -        -  196 

4.  Statements  of   Condition  as  Shown  by  Reports 

TO  THE  Comptroller  of  Currency,  1863-1902      -    199 


ILLUSTRATIONS 

Opposite 
Page 

I.    The  New  Building      -        -        -        Frontispiece 

As  projected,  from  architect's  drawings. 

II.    Edmund  Aiken 49 

The  First  President. 

III.  The  First  Building -        -    54 

Southwest  Corner  La  Salle  and  Lake  Streets. 

IV.  Samuel  M.  Nickerson -        61 

The  Second  President. 

V.    The  Second  Building,  as  It  Originally  Appeared  62 

Southwest  Corner  State  and  Washington  Streets. 

VI.    The  Ruins  after  the  Great  Fire     -       -        -       66 
VII.    The  Third  Building,  Now  Occupied      -       -       -    72 

Northwest  Corner  Dearborn  and  Monroe  Streets. 

VIII.    Lyman  J.  Gage  .--.-..        76 

The  Third  President. 

IX.    James  B.  Forgan 85 

The  Fourth  President. 

X.  Pyramid  Showing  at  Different  Dates  the  Rel- 
ative Proportions  of  the  Principal  Items 
Reported  by  the  First  National  Bank  of 
Chicago,  1863-1902 104 

XI.    Chart  Showing  the  Growth  of  the  First  Na- 
tional Bank  of  Chicago,  1863-1902    -        -        -  104 

XII,  Plan  of  Organization  and  Business  Adminis- 
tration OF  the  First  National  Bank  of 
Chicago         -----      At  end  of  Volume 


HISTORICAL 


CHAPTER  I 

EARLY   BANKING  IN  THE  UNITED   STATES 

The  financial  condition  of  a  state  is  the  most  trust- 
worthy standard  by  which  to  measure  national  strength. 
Empires  raised  to  the  zenith  of  glory  by  military 
prowess  or  political  intrigue  have  in  every  age  col- 
lapsed like  bubbles  of  air,  whenever  the  achievement 
of  soldier  or  statesman  was  not  based  upon  a  reason- 
able consideration  of  the  economic  resources  of  the 
people.  Carthage  in  antiquity  and  Venice  in  the 
Middle  Ages  were  again  and  again  hindered  in  their 
course  of  development  for  want  of  the  "sinews  of 
war."  Charles  V.,  in  Germany,  and  Napoleon  I.,  in 
Russia,  were  doomed  to  meet  defeat  in  their  cherished 
plans — the  one  to  overthrow  Protestantism,  the  other 
to  sit  on  the  throne  of  the  czars — because  of  their 
inability  to  collect  the  vast  sums  requisite  for  the 
accomplishment  of  these  purposes.  If  the  story  of 
mankind,  whether  state  or  individual,  be  examined  in 
detail,  it  will  be  found  that  the  power  to  succeed  has 
been  generally  dependent  upon  the  ability  to  create  a 
revenue.  With  ample  wealth  and  good  credit  the 
destiny  of  a  land  is  assured. 

In  the  ultimate  quantity  and  value  of  its  resources 
the  United  States  is  peculiarly  fortunate.  Hardly 
had   the  first  colonists  landed  on  these  shores  when 

3 


4       The  First  National  Bank  of  Chicago 

they  recognized  that  the  fertility  of  the  soil  was  their 
chief  material  blessing.  The  tobacco  of  Virginia  and 
the  wheat  of  Massachusetts,  the  wool  of  Pennsylvania 
and  the  fur  skins  of  New  York,  soon  confirmed  the 
anticipations  of  the  earliest  settlers.  Little  by  little, 
as  the  provinces  spread  to  the  westward,  other  pro- 
ducts were  added  to  the  list.  Manufactures  sprang 
up  in  spite  of  the  Navigation  Act,  and  the  other  sump- 
tuary legislation  of  Parliament;  agriculture  and  trade 
flourished.  Then  came  the  Revolution,  with  the  tem- 
porary disarrangement  of  business,  and  the  utter 
destruction  of  many  vested  rights.  Upon  the  resto- 
ration of  peace,  the  expansion  of  the  states  was  rapid; 
the  increase  of  their  wealth  was  scarcely  less.  The 
energy  of  a  newly  won  freedom  carried  the  flag  within 
a  few  decades  beyond  the  Alleghanies  to  the  Missis- 
sippi, across  the  plains,  and  over  the  Rockies,  until 
the  golden  shores  of  the  Pacific  were  reached;  when, 
as  if  for  the  plunge  into  the  sea  of  mystery,  a  halt  of 
many  years  ensued;  and  then,  with  the  stride  of  a 
Colossus,  the  Republic,  placing  one  foot  on  Hav/aii, 
planted  the  other  in  the  midst  of  the  Philippine  Archi- 
pelago at  the  gateway  to  the  Orient.  Every  advance 
has  meant  not  solely  territorial  aggrandizement,  in 
the  single  sense  of  conquest,  but  indeed  vastly  more 
in  the  enormous  accession  which  in  each  instance  has 
accrued  to  the  material  resources  of  the  nation.  And 
still  there  have  been  many  struggles.  In  this  career 
of   progress  there    have  often    intervened    obstacles, 


Early  Banking  in  the  United  States        5 

crises,  bankruptcies,  disasters,  wars.  Had  the  bounti- 
ful stores  of  nature  in  themselves  been  sufficient,  the 
Colonies  would  have  been  by  far  more  prosperous; 
the  cause  of  long-continued  grievances  would  have 
been  lacking;  loyalty  to  the  crown  of  Great  Britain 
would  perhaps  have  prevailed ;  the  Revolution  might 
not  have  been  fought.  If,  by  some  chance,  the  United 
States  had  arisen,  the  great  conflicts  over  the  consti- 
tution, the  shipping  bill,  the  national  bank,  the  slavery 
question,  and  the  silver  issue  would  have  been  un- 
known. The  adjustment  of  legislation  by  which  the 
production  and  management  of  these  riches  should  be 
guaranteed  was  to  be  a  work  of  centuries  scarcely  yet 
achieved. 

Two  prerequisites  to  the  prosperity  and  perma- 
nence of  American  institutions  were  essential:  a  sound 
currency  and  a  well-organized  system  of  banking  were 
necessary.  In  a  sense  distinct  problems  to  be  solved, 
in  the  broader  view  progress  in  the  one  implies  a  for- 
ward movement  in  the  other;  while  not  until  both 
these  ends  shall  have  been  accomplished  can  the  fiscal 
interests  of  a  state  be  said  to  be  properly  conserved. 
From  the  wampum  of  New  England  and  the  tobacco 
money  of  Virginia  to  the  present  currency  of  the 
United  States,  founded  upon  the  gold  standard,  is 
a  far  cry.  From  the  first  attempt  to  establish  a  bank 
in  the  province  of  Massachusetts,  in  1686,  to  the  pre- 
vailing national  banking  system,  the  span  is  quite  as 
great.     Nevertheless,   throughout  the  history  of  the 


6        The  First  National  Bank  of  Chicago 

nation,  certain  pre-eminent  problems  have  presented 
themselves  for  solution.  The  tendency  has  con- 
stantly been  toward  improvement ;  if  indeed,  in  many 
details,  perfection  has  not  yet  been  attained,  it  may 
still  be  confidently  asserted  that  a  wonderful  advance 
has  been  made. 

The  one  perpetual  struggle  on  the  part  of  financiers 
has  been  inevitably  directed  against  the  depreciation 
of  the  currency.  Money  in  itself  is  merely  a  relative 
term,  a  measure  convenient  to  have,  as  a  standard  by 
which  to  estimate  the  value  of  labor  and  merchandise. 
Its  one  essential  characteristic  is  invariability.  If  the 
common  denominator  fluctuates,  uncertainty  in  the 
other  factors  of  commercial  calculations  must  ensue. 
Therefore  every  nation  has,  for  the  sake  of  self-preser- 
vation, been  obliged  to  decide  upon  some  method  of 
maintaining  its  currency  at  one  fixed,  unalterable  level. 
Not  only  prosperity  at  home  but  credit  and  prestige 
abroad  depend  upon  it.  A  substantial  monetary  basis 
means  self-satisfaction,  respect,  honor,  and  power. 

One  of  the  striking  features  of  colonial  days  was 
the  variety  of  the  circulating  medium.  In  Virginia 
tobacco,  wheat,  peas,  Indian  corn,  barley,  oats,  and  silk 
competed  with  gold  and  silver;  in  Massachusetts  wam- 
pumage  held  the  field  almost  clear  to  itself.  In  both 
sections  currency  legislation  was  the  preoccupation  of 
local  statesmen.  The  heterogeneous  articles  of  trade, 
which  from  time  to  time  were  raised  to  the  dignity  of 
"legal   tender,"    invariably  showed    a    propensity  to 


Early  Banking  in  the  United  States        7 

decline  in  value.  In  1619  the  General  Assembly  of 
Virginia  first  fixed  the  rate  at  which  tobacco  should 
pass  current,  but  in  1633,  in  1642,  in  1655,  in  1666, 
in  1727,  in  1730,  and  in  1755  other  legislation  was 
enacted  with  a  view  to  hold  it  in  circulation.  Tobacco, 
and  the  certificates  issued  in  its  name,  constantly 
depreciated,  and  even  the  partial  destruction  of  stocks 
and  the  enforced  suspension  of  planting  failed  to  effect 
a  cure.  Conditions  in  Maryland  were  similar,  and 
those  in  New  England  and  the  other  provinces  not 
materially  different.  Bills  of  credit  were  issued  by 
Massachusetts  as  early  as  1690. 

The  colonial  assemblies  outvied  each  other  in 
debasing  the  currency;  again  and  again  Parliament 
interfered,  and  the  struggle  was  bitter.  Statutes, 
governors,  and  prohibitive  decrees  were  generally 
ineffectual.  The  bills  issued  were  practically  without 
security,  and  amounted  to  an  enormous  volume. 
Rhode  Island  alone  counted  them  to  the  value  of 
;^400,ooo.  In  every  instance  depreciation  and  repu- 
diation ensued.  The  measures  to  keep  this  paper 
afloat  were  varied  and  often  farcical.  Nothing  could 
stay  its  downward  course.  One  of  the  principal 
grievances  cherished  by  the  colonists — generally,  how- 
ever, overlooked — was  the  steady  determination  of  the 
mother  country  not  to  countenance  or  approve  such 
speculation.  At  first,  with  a  scarcity  of  the  precious 
metals,  the  difficulty  was  inherent,  and  no  mere  arti- 
ficial act  of  man  could  banish  it.     During  the  first  half 


8        The  First  National  Bank  of  Chicago 

of  the  eighteenth  century,  gold  and  silver  became 
sufficiently  plentiful  to  form  the  basis  of  a  currency, 
but  even  then  the  colonial  legislatures  resolutely 
opposed  any  improvement  in  its  quality. 

The  Continental  Congress  was  bafifled  by  the  same 
problem;  $242,000,000  of  paper  was  issued  in  1779; 
in  178 1  it  was  worthless.  Various  remedies  were  sug- 
gested and  tried  without  avail.  The  success  of  the 
Revolution  itself  was  jeopardized,  for  salaries  could 
not  be  paid,  and  soldiers  were  in  open  mutiny.  After 
the  close  of  hostilities,  relief  was  very  slowly  accorded ; 
for  many  years  confusion  prevailed.  Some  gold, 
more  silver,  and  much  paper  thenceforth  consti- 
tuted the  circulating  medium  of  the  new  republic. 
Continental  bills,  pieces  of  eight,  Spanish  dollars, 
provincial  shillings  of  various  values,  British  six- 
pences, French  napoleons,  Dutch  florins,  and  German 
thalers,  together  with  a  miscellaneous  assortment  of 
"shin  plasters,"  "wild  cat"  issues,  "stump  tails," 
and  greenbacks,  were  in  active  circulation  or  succeeded 
each  other.  Every  merchant  was  obliged  to  keep  at 
hand  a  printed  table  showing  the  current  value  of  each 
of  these  beautiful  representatives  of  the  precious 
metals. 

Meanwhile  Congress  spasmodically  applied  itself  to 
the  task  of  bringing  order  out  of  chaos.  In  1792,  at  the 
suggestion  of  Hamilton,  the  double  standard  of  gold 
and  silver,  at  the  ratio  of  one  to  fifteen  was  approved. 
Before   18 17  gold  had  disappeared  from   circulation. 


Early  Banking  in  the  United  States         9 

In  1834  a  combination  of  causes — the  desire  to  draw 
gold  from  Europe,  the  influence  of  southern  gold 
miners,  and  the  false  notion  that  the  silver  standard 
was  identified  with  the  interests  of  the  United  States 
Bank — led  to  the  passage  of  the  Gold  Act.  At  the 
ratio  of  one  to  sixteen  the  double  standard  was  fic- 
titiously preserved  on  the  statute  book,  while  rejected 
in  actual  usage.  Thenceforth  the  ultimate  adoption 
of  the  gold  standard  by  congressional  enactment  was 
a  mere  matter  of  form.  The  measure  of  1873  might 
well  have  been  foreseen ;  it  placed  the  stamp  of 
approval  upon  the  work  of  the  previous  generation. 
Had  not  the  Civil  War  engrossed  the  attention  and 
energy  of  the  nation,  the  recognition  of  prevailing 
conditions  would  have  undoubtedly  been  accorded  at 
an  earlier  day. 

The  story  of  banking  in  the  Colonies  can  be  told  in 
a  few  lines.  Primarily  the  people  did  not  need  an 
extensive  system,  while  the  Crown  itself  was  adverse 
to  any  such  innovation.  There  is  some  doubt 
when  the  first  institution  which  merits  the  name 
of  a  bank  was  established.  Possibly  one  existed  in 
Massachusetts  in  1686.  In  1701  steps  were  taken 
in  the  same  province  to  organize  a  land  bank,  but  the 
promoters  failed  in  their  project.  Again,  in  17 14,  the 
plan  was  revived,  and  met  with  great  popularity  among 
those  owning  large  estates  but  having  little  available 
cash.  Many  trades-people  who  were  financially  em- 
barrassed also  viewed  the  proposition  with  favor.     The 


lo     The  First  National  Bank  of  Chicago 

scheme  was  to  issue  bills  not  to  exceed  in  amount 
^300,000  secured  by  a  pledge  of  real  estate  to  a  simi- 
lar value  and  held  in  trust  by  the  corporation ;  loans 
of  paper  money  at  five  per  cent  were  to  be  made  upon 
real  property.  The  backers  of  the  movement  claimed 
that  every  land-owner  ought  to  have  in  current  funds 
a  sum  equivalent  to  his  real  holdings.  In  this  manner 
they  proposed  to  supply  a  medium  of  exchange.  The 
Provincial  Council,  however,  declined  to  pass  the 
requisite  enabling  act. 

Once  more,  in  1739,  the  plan  was  resurrected,  and 
business  was  begun  without  a  charter.  By  this  time 
the  matter  had  assumed  a  political  phase.  The  local 
authorities  were  now  favorably  disposed,  but  the  royal 
governor  was  obdurate.  Numerous  civil,  military, 
and  judicial  officers  were  interested  in  the  enterprise, 
and  many  sacrificed  their  positions  for  the  sake  of 
remaining  associated  with  the  organization.  Many 
institutions  in  imitation  of  the  original  bank  were 
inaugurated.  Parliament  then  intervened  and  declared 
their  issue  of  bills  illegal.  Governor  Belcher  was 
nearly  mobbed,  and  as  the  result  of  private  intrigue, 
soon  removed.  The  new  executive  proved  friendly, 
or  at  least  neutral;  the  General  Court  of  Massachusetts 
voted  remedial  legislation,  but  the  outcome  was  a 
foregone  conclusion.  Similar  experiments  were  made 
at  New  London,  Connecticut,  in  1732,  and  at  Charles- 
ton, South  Carolina,  in  1775.  The  notes  of  these 
institutions  declined  so  much   that  in  1748   ^100  in 


Early  Banking  in  the  United  States      ii 

coin  cost  in  Massachusetts  ;^i,  lOO  in  paper.  While  in 
the  other  colonies  the  ratio  was  less,  there  still  was 
everywhere  an  enormous  depreciation.  Every  one  asso- 
ciated with  the  banks  was  ruined,  and  the  end  of  the 
craze  rapidly  came.  The  prohibition  by  Parliament, 
in  175  I,  of  the  use  of  legal  tender  paper  money  issued 
by  the  local  treasuries  aroused  the  deepest  ire  on  the 
part  of  the  colonists,  and  it  may  truthfully  be  said 
that  their  devotion  to  this  cause  was  a  potent  factor 
in  the  movement  toward  revolution. 

The  experience  of  the  Continental  Congress,  as 
lately  reviewed,  was  identical.  For  a  year,  perhaps, 
its  notes  were  maintained  at  par.  Then,  encouraged 
by  this  apparent  success  of  creating  artificial  value, 
the  quantity  in  circulation  was  materially  increased. 
The  usual  result  ensued.  Depreciation  set  in  until, 
in  1779,  twenty  paper  dollars  were  required  to  buy 
one  of  silver.  Congress  then  limited  the  issue  and 
pledged  its  redemption,  but  without  avail.  In  spite 
of  every  effort  the  ratio  in  1780  fell  from  forty  to 
seventy-five,  when,  in  the  northern  provinces,  the 
bills  disappeared  from  use.  One  year  later,  when  the 
difference  in  the  South  was  one  thousand  to  one,  they 
also  succumbed  there.  At  least  $200,000,000  of 
this  currency  thus  vanished.  Some  degree  of  as- 
tonishment must  be  felt  when  it  is  realized  how 
often  the  people  have  been  beguiled  by  the  same 
phantom. 

The  first  bank  to   be  organized   after  the  breach 


12      The  First  National  Bank  of  Chicago 

with  the  mother  country,  sprang  from  a  meeting  of 
patriotic  citizens  held  at  the  Coffee  House  in  Phila- 
delphia, on  June  7,  1780.  This  institution,  known 
as  the  Pennsylvania  Bank,  and  in  the  establishment 
of  which  Robert  Morris  played  an  important  role,  was 
taken  under  the  patronage  of  the  Continental  Con- 
gress and  survived  about  eighteen  months. 

The  two  principal  movers  in  the  foundation  of  a 
national  bank  were  Robert  Morris  and  Alexander 
Hamilton.  As  far  back  as  1763  the  former  had  con- 
sidered the  benefits  to  be  derived  from  such  an  enter- 
prise. In  1779  Hamilton  proposed  that  a  bank  be 
incorporated  by  act  of  Congress.  The  Bank  of  North 
America,  after  strenuous  opposition,  was  finally,  on 
December  31,  1781,  granted  a  perpetual  charter.  On 
January  7,  1782,  its  doors  were  opened  for  business. 
From  time  to  time  this  institution  was  authorized  by 
the  legislature  of  Pennsylvania  until  in  1864  it  availed 
itself  of  the  provisions  of  the  National  Banking  Act. 
Reference  is  here  made  to  it  because  it  was  the  first 
to  be  organized  in  this  country  on  sound  financial 
principles.  Its  capital  was  fixed  originally  at  $400,- 
000,  divided  into  one  thousand  shares  of  $400  each, 
payable  in  gold  and  silver.  The  board  of  directors 
consisted  of  twelve  persons  elected  by  the  stockhold- 
ers. Its  notes  were  declared  receivable  for  all  public 
dues  and  private  debts.  Within  three  years  the  capi- 
tal was  increased  to  $2,000,000.  As  soon  as  Hamilton 
became  Secretary  of  the  Treasury,  under  the  newly 


Early  Banking  in  the  United  States      13 

initiated  government,  he  urged  the  establishment  of  a 
national  bank.  He  first  thought  that  the  Bank  of 
North  America  might  be  adapted  and  remodeled  for 
this  purpose,  but  its  directorate  did  not  apparently 
manifest  any  desire  to  assume  the  burdens  necessarily 
imposed;  hence  a  bank  to  be  especially  constituted 
was  the  alternative. 

Under  the  inspiration  of  Hamilton,  Congress,  in 
the  early  days  of  1791,  approved  the  creation  of  the 
first  Bank  of  the  United  States.  Its  capital  was 
$10,000,000,  consisting  of  twenty-five  thousand  shares 
of  $400  each.  The  United  States  subscribed  for 
$2,000,000,  the  balance  of  $8,000,000  was  offered  to 
the  public.  A  board  of  directors,  composed  of  twenty- 
five  persons,  was  charged  with  the  management.  The 
notes  were  practically  limited  in  their  issue  to  the  value 
of  the  capital  stock;  but  in  fact  never  more  than  fifty 
per  cent  of  this  authorized  circulation  was  reached ; 
they  were  legal  tender  for  all  debts  to  the  United 
States.  The  bank  might  establish  as  many  branches 
as  necessary,  but  was  forbidden  to  enter  into  mercan- 
tile business.  The  term  of  the  charter  was  for  twenty 
years,  during  which  time  it  was  agreed  that  not  any 
rival  should  be  incorporated.  Notwithstanding  the 
bitter  opposition  of  Jefferson  and  the  Republicans  of 
that  age,  the  institution  flourished.  The  government, 
by  the  sale  of  its  shares,  netted  a  profit  of  some  twenty- 
eight  per  cent,  and  otherwise  the  pecuniary  results 
were  fortunate. 


14     The  First  National  Bank  of  Chicago 

When  the  day  for  the  renewal  of  the  charter 
arrived,  the  political  status  was  decidedly  adverse  to 
the  interests  of  the  corporation ;  many  sincerely 
regarded  it  as  a  menace  to  the  welfare  of  the  repub- 
lic. The  overthrow  of  Gallatin,  the  then  Secretary 
of  the  Treasury,  who  was  favorably  disposed,  was 
just  at  that  moment  also  the  aim  of  a  powerful  cabal ; 
the  possibilities  of  the  future  seem  to  have  been 
largely  identified  with  his  personality.  After  a  furi- 
ous debate  in  Congress,  those  who  held  the  existence 
of  the  bank  unconstitutional  triumphed.  Upon  a  test 
question  the  measure  for  the  extension  of  its  privi- 
leges was  defeated  in  the  House  by  one  vote  and  in 
the  Senate  by  the  casting  vote  of  the  Vice-President. 
Thus,  in   1811,  the  institution  went  into  liquidation. 

The  advocates  of  state  rights  had  won  the  first 
crucial  battle.  The  War  of  18 12  followed.  The  state 
banks  proved  unequal  to  the  emergency ;  in  the  crisis 
the  majority  suspended.  During  the  next  six  years 
the  issues  of  irredeemable  paper  increased  from 
$28,000,000  to  $110,000,000,  circulating  at  a  dis- 
count of  fifteen  to  twenty  per  cent.  The  finances  of 
the  country  fell  into  a  deplorable  state. 

After  this  brief  experience  with  a  fiat  currency,  the 
champions  of  a  national  bank  again  took  courage. 
When,  in  18 14,  Secretary  Dallas  sent  to  Congress  a 
recommendation  for  the  establishment  of  such  an  insti- 
tution, the  ensuing  debate  upon  the  bill  showed  the 
chief  difference  to  be  in  regard  to  details.     There  was 


Early  Banking  in  the  United  States      15 

an  overwhelming  majority  in  favor  of  the  main  ques- 
tion. Daniel  Webster  headed  those  opposed  to  the 
plan  suggested  by  the  Treasury  Department.  Again 
the  result  was  uncertain.  The  vote  of  the  Speaker  of 
the  House  returned  the  administration  bill  to  the  com- 
mittee for  amendment.  Mr.  Webster's  views — dis- 
tinctly partial  to  the  state  banks — were  incorporated, 
and  the  measure  as  revised  then  passed.  The  Senate 
approved  it,  but  it  met  with  the  veto  of  the  Presi- 
dent, strangely  enough,  because  he  did  not  consider 
that  the  proposed  bank  would  satisfy  the  exigencies 
of  the  government. 

Finally,  in  18 16,  after  another  stormy  debate,  the 
act  authorizing  the  second  United  States  Bank  was 
voted  and  approved.  The  capital  was  fixed  at  $35,- 
000,000,  of  which  one-fifth  was  subscribed  by  the 
government.  Otherwise  the  charter  was,  with  one 
exception,  similar  to  that  of  the  first  corporation. 
The  feature  which  indicated  progress  was  the  clause, 
adopted  at  the  suggestion  of  Webster,  that  deposits 
as  well  as  notes  should  be  payable  in  specie.  The 
bank  opened  its  doors  in  April,  18 17.  Unfortunately 
for  its  reputation  a  wild  speculation  in  the  stock  oc- 
curred. Other  scandals  and  gross  mismanagement  very 
nearly  precipitated  failure  before  18 18,  when  there 
was  difficulty  in  weathering  the  general  financial  crisis. 
With  a  radical  reorganization,  the  institution  had, 
nevertheless,  within  the  ensuing  ten  years,  attained 
such  a  commanding  position  as  to  be  regarded  practi- 


i6      The  First  National  Bank  of  Chicago 

cally  a  national  necessity.  In  1829  Jackson,  in  his 
first  message  to  Congress,  surprised  the  country  by  a 
proclamation  of  hostility.  Seven  years  before  the  ex- 
piration of  the  existing  charter  he  invited  attention  to 
the  feasibility  of  its  renewal.  The  animosity  to  banks 
of  every  description  prevailing  throughout  the  South 
and  the  West,  strongly  seconded  by  the  self-interest 
of  the  numerous  inflated  concerns  doing  business  under 
state  authority,  rapidly  crystallized.  The  corporation 
which  had  rendered  enormous  services  to  the  nation, 
with  its  notes  at  par  not  only  throughout  the  Union 
but  in  every  country  of  the  world,  and  with  its  stock 
at  a  premium  of  forty  per  cent,  at  once  became  the 
target  of  all  the  advocates  of  free  banking  and  un- 
limited paper  currency.  The  reason  of  Jackson's 
attack  on  the  bank,  it  is  believed,  was  solely  politi- 
cal; his  friends  hoped  by  this  means  to  secure  control 
of  it.  Many  others  who  joined  with  them  were,  how- 
ever, inspired  by  different  motives. 

Generally  in  the  West  and  the  South  the  state  banks, 
the  centers  of  furious  speculation,  had  incurred  popu- 
lar hostility;  the  cause  of  the  United  States  Bank 
was,  by  a  misconception,  identified  Avith  and  preju- 
diced by  their  careers;  while  they  themselves,  in  the 
overthrow  of  the  national  institution,  anticipated  the 
opportunity  for  redoubled  activity  on  their  own  part. 
The  issue  raised  by  Jackson  was  more  speedily  deter- 
mined than  had  been  foreseen.  After  three  years  of 
open  conflict  and  silent  intrigue  between  the  opposing 


Early  Banking  in  the  United  States       17 

parties,  a  bill  was  passed  by  Congress,  in  the  summer 
of  1832,  granting  an  extension  of  the  charter,  but  it 
was  promptly  vetoed. 

In  the  presidential  election  of  the  same  year,  when 
the  question  was  paramount,  the  people  sustained 
Jackson;  the  bank  and  its  supporters,  irrevocably 
entangled  in  the  political  situation,  were  overwhelmed. 
Various  illegal  strategems  were  now  employed  in  the 
struggle  for  existence.  The  ire  of  the  President  was 
aroused,  and  he,  in  spite  of  several  involuntary  delays, 
accomplished  the  transfer  of  the  government  deposits 
to  the  state  banks.  Rejected  by  the  nation,  the 
United  States  Bank  sought  elsewhere  to  prolong  its 
term  of  life.  On  February  18,  1836,  a  measure  was 
enacted  by  the  legislature  of  Pennsylvania  incorpo- 
rating it  for  a  period  of  thirty  years,  but  the  institu- 
tion was  destined  to  a  much  shorter  career.  The 
character  of  its  business  was  materially  altered. 
Excessive  loans  made  upon  worthless  bonds  and 
stocks  soon  caused  embarrassment.  In  1837,  1838, 
and  finally  in  1841,  the  bank  suspended  payment. 
Meanwhile  the  state  banks,  with  an  inflation  of  their 
notes  from  $61,000,000  to  $149,000,000,  embarked 
upon  a  brief  era  of  wild  speculation.  On  May  10, 
1837,  there  was  an  almost  general  suspension.  After 
various  experiments  the  circulation  was,  in  1843, 
reduced  to  $58,000,000;  thenceforward  for  nearly  a 
quarter  of  a  century  the  regulation  of  banking  was 
confided  to  the  states,  with  a  variety  of  results.     The 


i8      The  First  National  Bank  of  Chicago 

government,  for  the  most  part,  protected  its  own  wel- 
fare by  the  independent  treasury  system,  but  the 
people  were  subject  to  the  whims  of  local  legislators. 
While  the  two  national  banks  had  proved  of  service 
to  the  country,  they  were,  as  monopolies  patterned 
after  European  models,  undoubtedly  ill-suited  to  the 
genius  of  a  free  people.  Moreover,  they  had  demon- 
strated their  inability  to  avoid  politics.  The  last 
bank  had  come  to  be  viewed  as  a  strong  power  in 
opposition  to  the  administration,  and  as  such — more 
than  because  of  any  inherent  diversity  of  financial 
opinion — had  been  crushed.  All  attempts  to  re-estab- 
lish a  United  States  Bank  failed.  On  the  contrary, 
the  reaction  carried  the  pendulum  to  the  other  ex- 
treme of  state  supervision.  The  interval  of  transition 
prior  to  the  adoption  of  the  national  banking  system 
was  inevitably  long. 


CHAPTER  II 

WESTERN  BANKING  UNDER  STATE  LAWS 

To  make  any  broad  and  equally  reliable  assertions 
about  the  state  banks  of  the  days  prior  to  the  Civil 
War  would  be  exceedingly  difficult;  to  compare  their 
management  and  conduct  with  those  of  the  present 
generation — if  not  involving  conclusions  positively 
erroneous — would  at  least  be  misleading,  for  the  wise 
revision  of  banking  laws,  and  their  more  rigid  enforce- 
ment, have  raised  these  institutions  to  a  position  of 
usefulness  not  inferior  to  the  level  attained  by  those 
under  national  supervision. 

The  prevailing  impression  of  the  effect  of  the  state 
banking  system  upon  the  interests  of  the  people  in 
earlier  days  is  apt  rather  to  be  biased  by  the  remem- 
brance of  exceptional  phenomena  than  to  be  governed 
by  the  actual  record  of  events.  Dwelling  upon  the 
darker  side  of  the  picture,  reviewing  in  memory  the 
defects,  the  losses,  the  scandals,  and  the  disasters  due 
to  wild  speculators  and  more  dishonest  rascals,  a  high 
degree  of  impartiality  and  a  deep  insight  into  history 
are  essential  to  recognize  the  far-reaching  and  endur- 
ing services  rendered  by  the  many  admirably  conducted 
establishments  which  were  scattered  here  and  there 
throughout  the  land.  Some  were  located  in  the 
states — then  more  properly  than   now  known  as  the 

19 


20     The  First  National  Bank  of  Chicago 

West — and  have  left  behind  them  a  reputation,  bril- 
liant when  compared  with  that  of  the  greater  number 
of  their  local  contemporaries;  but  for  the  large 
majority  of  the  more  honorable  institutions,  the  cen- 
ter of  activity  was  in  the  East.  Massachusetts,  with 
its  Suffolk  Bank  system  of  redemption;  New  York, 
with  its  chartered  banks,  the  Safety  Fund  Law  of 
1829,  and  its  well-constructed  free  banking  legislation, 
together  with  Maryland  and  New  Jersey,  are  distin- 
guished for  the  high  degree  of  perfection  to  which 
they  carried  the  methods  and  management  of  banking. 
Of  the  states  beyond  the  Alleghanies,  Ohio  holds  the 
first  rank;  in  the  study  of  the  sources  to  which  the 
provisions  of  the  National  Banking  Act  can  be  traced, 
its  legislation  is  second  in  importance  only  to  that  of 
New  York,  a  fact  undoubtedly  attributable  to  the  per- 
sonal environment  of  Secretary  Chase.  As  a  notable 
exception  to  the  general  rule,  the  State  Bank  of  Indi- 
ana, chartered  in  1834,  likewise  deserves  special  men- 
tion. Until  its  voluntary  liquidation,  in  1866,  it  never 
closed  its  doors  a  single  day.  The  net  earnings  to  the 
state  alone  on  its  investment  of  $800,000 — represent- 
ing one-half  of  the  capital  stock — amounted  in  twenty- 
five  years  to  $3,500,000.  The  legislation  of  Michigan 
first  gave  practical  form  to  the  doctrine  destined  to 
become  the  fundamental  principle  of  the  National 
Banking  Act,  that  every  bank  should  place  in  the 
possession  of  a  duly  designated  authority  sufficient 
collateral  for  the  payment  of  its  outstanding  notes — 


Western  Banking  under  State  Laws       21 

which,  however,  in  application,  unfortunately  proved 
defective. 

The  state  banks,  in  the  details  of  their  organiza- 
tion, were  of  various  distinct  types.  Some  were 
especially  and  individually  chartered ;  others  were 
established  under  the  authority  of  general  law  in  their 
respective  localities.  The  latter  system  usually 
resulted  in  free  banking.  The  one  method  commonly 
succeeded  the  other  in  usage,  the  tendency  being 
more  and  more  toward  the  abolition  of  special  privi- 
leges, and  the  extension  of  equal  rights  to  those  who 
desired  to  engage  in  the  business.  Again,  in  certain 
cases,  the  entire  capital  was  supplied  by  the  state,  and 
the  management  was  under  its  immediate  direction ; 
in  others,  and  more  ordinarily,  the  stock  was  held 
partly  by  the  commonwealth  and  partly  by  individu- 
als, while  there  was  a  joint  control.  Of  course,  the 
great  majority  of  institutions  were  exclusively  in  the 
hands  of  private  persons.  Not  any  final  conclusion 
can  be  reached  as  to  which  form  or  style  was  the  most 
successful  or  even  the  more  commendable.  Experi- 
ence was  not  by  any  means  uniform  or  decisive.  In 
some  sections  prosperity  seems  to  have  been  the  rule, 
whatever  may  have  been  the  theory;  elsewhere  failure 
and  disaster  customarily  ensued.  Laws,  which  in  one 
state  worked  admirably,  in  another,  whether  by  the 
laxity  of  their  administration  or  by  the  perversity  of 
human  nature,  utterly  failed.  Even  in  adjoining  com- 
munities,  nay,   almost  in   the  same  city,    the  effects 


22      The  First  National  Bank  of  Chicago 

were  different.  The  personal  character  of  the  mana- 
gers and  the  popular  sentiment  of  their  environment 
were  primarily  the  factors  which  determined  the  issue. 
Thus  it  happened  that  in  the  East  and  some  parts  of 
the  South,  with  conservative  and  honest  procedure, 
banking  flourished,  and  was  in  good  repute;  while 
throughout  the  West — with  rare  exceptions — where 
the  disposition  to  speculation  and  fraudulent  practices 
prevailed,  a  vast  amount  of  suffering  and  scandal 
occurred,  involving  the  business  in  dishonor,  and  evok- 
ing at  times  the  rage  of  popular  condemnation.  As 
illustrative  of  the  extent  to  which  this  feeling  was 
carried,  the  laws  of  Wisconsin  and  Iowa  may  be  cited. 
In  the  former  the  territorial  convention  approved  "an 
act  to  restrain  unauthorized  banking";  in  the  consti- 
tution of  the  latter  provision  was  made  for  "all  other 
corporations  except  those  with  banking  privileges,  the 
creation  of  which  is  prohibited"  ;  and  again,  the  exer- 
cise of  "the  privileges  of  banking  or  creating  paper  to 
circulate  as  money"  was  forbidden  under  the  penalty 
of  one  year  in  the  county  jail  and  $i,ooo  fine  for  each 
offense. 

The  phantom  of  limitless  wealth  to  be  realized  by 
the  issue  of  a  fiat  currency  was  the  delusion  which 
ensnared  many  embryonic  financiers;  some  perhaps 
were  conscientious  in  their  intentions  to  redeem  their 
notes,  but  of  these  the  majority,  finding  the  task  more 
difficult  than  they  had  anticipated,  failed;  while  others, 
from  the  very  beginning,  were  eager  to  amass  fortunes 


Western  Banking  under  State  Laws       23 

by  any  means  at  the  expense  of  the  public.  Inci- 
dentally the  conditions  were  favorable.  Theoretically, 
with  the  downfall  of  the  United  States  Bank,  the  idea 
had  triumphed  that  the  issue  of  bills  by  an  institution 
chartered  by  a  state  was  perfectly  legitimate.  In  the 
East  this  was  the  chief  consideration,  but  in  the  West 
other  motives  also  intervened.  Practically — and  in- 
deed a  feature  by  far  more  important — the  opportunity 
and  the  demand  here  existed.  Beyond  the  Allegha- 
nies  there  was  in  early  days  a  dearth  of  a  circulating 
medium.  As  in  the  original  colonies  during  the 
seventeenth  century  and  later,  the  lack  of  any  com- 
mon standard  of  exchange  was  felt.  The  populace 
also  was  of  that  sentiment  which,  strangely,  and  uni- 
versally in  ruder  communities,  regards  any  article  bear- 
ing an  impress  of  value  as  good  and  sound  currency. 
For  some  reason — perhaps  unfamiliarity  with  them — 
the  precious  metals  were  not  then  viewed  with  that 
respect  which  the  inhabitants  of  older  and  better 
organized  regions  accord  them.  The  field  at  first  was 
open  and  free  to  all  comers.  For  a  few  years,  so  long 
as  the  issue  of  bills  could  be  absorbed  in  the  channels 
of  trade,  and  those  who  were  responsible  for  them 
were  in  a  position  to  redeem  them  when  required,  the 
day  of  reckoning  was  postponed.  Gradually  this  very 
prosperity  attracted  less  scrupulous  men,  who  assumed 
obligations  far  beyond  the  strength  of  their  credit  or 
means;  various  dishonest  schemes  were  elaborated; 
sudden  crises  surprised  the  most  sanguine,  and  a  great 


24      The  First  National  Bank  of  Chicago 

number  fell.  The  people  at  length  were  aroused  from 
their  Utopian  dreams.  Scarcely  any  escaped  loss,  and 
many  succumbed  to  ruin.  The  revulsion  of  opinion 
was  rapid  and  decided.  All  banks  of  issue  were  con- 
founded in  the  public  mind ;  those  which  by  extraor- 
dinary skill  and  upright  conduct  had  withstood  the 
worst  stage  of  financial  distress,  now  faced  a  stub- 
bornly prevailing  hostility.  The  effect  of  these  experi- 
ences is  apparent  in  the  adverse  tendency  of  legislation 
toward  the  end  of  this  period. 

Another  obstacle  to  the  permanent  success  of  those 
banks,  in  the  management  of  which  the  state  partially 
or  exclusively  participated,  was  the  danger  of  political 
complications.  The  feature,  so  manifest  in  the  career 
of  the  United  States  Banks,  was,  on  a  limited  scale, 
present  in  almost  every  institution  of  this  class.  In 
some  instances,  as  for  example,  in  Illinois,  the  bank 
became  an  issue  in  local  campaigns,  and  was  irrevo- 
cably ensnared  in  the  meshes  of  the  net  of  passion  and 
prejudice. 

The  defects  in  the  methods  inaugurated  by  the 
several  states  were  multiple.  The  career  of  the  banks 
specially  chartered,  entirely  or  partially  owned  and 
managed  by  the  incipient  commonwealths,  was,  with 
the  exception  in  the  case  of  Indiana,  ephemeral. 
Generally  a  lack  of  good  common  sense  in  the  direc- 
tion of  their  affairs  destined  them  from  the  first  to 
speedy  dissolution.  The  system  of  free  banking, 
which  in  turn  succeeded,  to  all  intents  and  purposes 


Western  Banking  under  State  Laws       25 

manifested,  only  in  an  exaggerated  form,  the  faults 
and  errors  of  its  predecessors.  Well  planned,  if  the 
facts  taken  for  granted  were  true,  and  if  rigorously 
executed,  the  laws  for  its  guidance  were  ordinarily 
based  upon  a  misconception  or  false  belief,  and  were 
exceedingly  carelessly  administered.  In  some  in- 
stances, absolute  corruption  and  dishonesty  perverted 
the  provisions,  intended  to  safeguard  the  rights  of  the 
people,  into  instruments  of  deception  and  fraud.  The 
endeavor  to  force  the  growth  of  these  financial  plants 
by  artificial  means  uniformly  resulted  in  dismal  fail- 
ure. Not  merely  measures,  but  wealth,  and  especially 
men  of  experience  and  prudence  were  essential. 
Under  the  conditions  which  existed,  the  disorganiza- 
tion was  complete;  in  times  of  peace  the  situation 
would  have  been  critical,  in  days  of  war  it  was  peril- 
ous; but  still  it  may  well  be  doubted  how  long  reform 
might  yet  have  been  deferred  had  not  the  stress  of 
calamity  imperatively  demanded  the  reorganization  of 
individual  and  national  credit. 


CHAPTER  III 

THE  INCEPTION  OF  CHICAGO  BANKING 

The  commercial  operations  of  the  people  of  Chicago 
prior  to  1835  were  not  of  such  magnitude  as  to  require 
the  facilities  of  an  organized  establishment  of  credit. 
Whenever  it  happened  that  a  trader  wanted  to  make 
a  remittance  to  the  East,  he  could  be  accommodated 
by  calling  on  his  fellow-townsman,  Gordon  S.  Hub- 
bard, who  incidentally  kept  a  current  account  in 
Buffalo,  and  whose  drafts  were  always  paid.  The 
central  point  at  which  many  of  the  highroads  leading 
from  beyond  the  Alleghanies  to  the  Far  West  con- 
verged, was,  however,  on  the  southern  shore  of  Lake 
Michigan.  The  era  of  speculation  in  the  wild  lands 
of  the  prairies  was  also  just  opening;  the  lack  of  a 
larger  volume  of  the  circulating  medium  was  felt. 

Under  the  system  of  banks,  as  then  in  vogue,  it  was 
natural  that  the  institution  legally  recognized  in  Illi- 
nois should  seek  to  satisfy  the  demands  of  the  young 
but  rising  community.  Hence,  on  December  5,  1835, 
the  press  announced  that  the  state  bank,  which  had 
already  been  incorporated,  had  decided  to  inaugurate 
a  branch  at  Chicago.  Business  was  begun  about  ten 
days  subsequently  in  a  building  situated  at  the  corner 
of  La  Salle  and  South  Water  streets.  John  H.  Kinzie 
was  president  and  W.  H.  Brown  cashier.     Among  the 

26 


The  Inception  of  Chicago  Banking        27 

eight  other  directors  was  Gordon  S.  Hubbard.  Any 
kind  of  paper  received  by  this  concern,  and  which 
would  circulate  in  trade,  was  regarded  as  good  money. 
Thus  bills  issued  in  Wisconsin,  Michigan,  Indiana, 
southern  Illinois,  or  elsewhere  were  passed  from  hand 
to  hand.  The  bank  was  far  from  a  pure  blessing; 
before  its  entrance  into  the  neighborhood  silver  coins 
had  been  the  chief  currency,  but  now  almost  any  old 
piece  of  paper  bearing  the  imprint  of  some  known  or 
unknown  maker  was  the  only  substitute.  These 
worthless  bits  of  parchment  drove  the  metals  entirely 
out  of  use.  In  the  mean  time  Chicago  grew  from  a 
village  to  a  town  of  7,580  inhabitants  in  1843,  when, 
with  the  collapse  of  the  principal  institution,  the  local 
agency,  of  course,  closed  its  doors.  Even  before  its 
retirement  from  the  field  the  quantity  of  miscellane- 
ous, heterogeneous  scrip  and  tradesmen's  checks  for 
small  amounts  was  utterly  inadequate  for  the  needs 
of  the  citizens.  With  its  failure,  aside  from  the 
actual  loss  suffered,  serious  embarrassment  for  want 
of  legitimate  financial  accommodations  might  have 
ensued,  had  not  certain  determined  individuals  already 
had  recourse  to  transactions  which,  technically,  were 
illegal.  Private  firms  thenceforth  furnished  the  sole 
facilities  until  the  passage  of  the  Free  Banking  Act,  in 
1851. 

As  early  as  1837  a  charter  had  been  secured  from 
the  Illinois  legislature  for  the  Chicago  Marine  and  Fire 
Insurance  Company,  a  corporation  which  was  at  once 


28      The  First  National  Bank  of  Chicago 

organized  with  J.  S.  Breese  as  president  and  L.  D. 
Boone  as  secretary.  The  statute  expressly  enjoined 
the  concern  from  undertaking  a  banking  business  and 
forbade  the  issue  of  bills  or  notes.  The  promoters  of 
the  enterprise  nevertheless  openly  defied  and  skilfully 
evaded  the  letter  of  the  law.  Certificates  of  deposit 
for  all  sums  left  in  its  hands  were  given,  payable  on 
demand  by  the  insurance  company,  and  speedily  found 
their  way  into  the  currents  of  trade. 

A  man  of  striking  personality  just  then  appeared 
upon  the  scene.  George  Smith,  a  native  of  Aberdeen, 
Scotland,  whose  name  and  fame  are  still  well  known 
to  the  world  of  finance,  had  first  visited  the  vicinity 
of  the  nascent  city  of  Chicago  in  1834-35.  Convinced 
of  the  opportunity  for  realizing  large  profits  by  invest- 
ments in  real  estate,  he  organized  the  Scottish  Illinois 
Land  and  Investment  Company,  subscribing  his  own 
patrimony  of  some  $15,000,  and  upon  his  return  to 
Scotland,  inducing  many  influential  friends  to  join 
him.  Considerable  money  was  made,  but  the  panic 
of  1837  intervening,  required  the  presence  of  Mr. 
Smith  again  in  America.  Together  with  several  com- 
patriots he  came  once  more  to  Chicago.  These  young 
men,  with  the  peculiar  shrewdness  and  innate  sagacity 
of  their  race,  eagerly  watched  the  proceedings  of  the 
new  venture  launched  by  Messrs.  Breese,  Boone,  and 
their  associates.  In  the  winter  of  1838-39  the  Wis- 
consin legislature,  in  spite  of  the  explicit  provisions  of 
the   territorial   constitution,    was    induced   to    pass   a 


The  Inception  of  Chicago  Banking        29 

similar  act,  chartering  the  Wisconsin  Fire  and  Marine 
Insurance  Company,  with  a  capital  stock  of  $225,000, 
one-half  of  which  was  subscribed  by  George  Smith, 
Alexander  Mitchell,  and  the  firm  of  Scotchmen  of 
Strachan  &  Scott,  while  the  other  half  was  floated  in 
Scotland.  The  headquarters  were  technically  at  Mil- 
waukee, but  Strachan  &  Scott  became  the  agents  at 
Chicago,  and  here  the  greater  number  of  transactions 
took  place.  Authority  was  granted  to  conduct  a 
general  insurance  business,  "to  receive  money  on 
deposit  and  to  loan  it  on  satisfactory  security,  and  to 
invest  such  capital  as  it  may  have  in  the  purchase  of 
public  or  other  stock  or  in  any  other  moneyed  tran- 
sactions or  operations  for  the  sole  benefit  of  the  com- 
pany, but  nothing  contained  in  this  section  shall  give 
the  company  banking  privileges."  Any  participation 
in  mercantile  business  was  forbidden,  and  it  was  pro- 
vided that  the  company  must,  by  its  own  indorsement, 
guarantee  the  notes  of  any  other  concerns  which  it 
might  put  into  circulation.  Smith's  chief  assistant  in 
this  enterprise  was  his  young  compatriot,  Alexander 
Mitchell,  who  came  out  especially  from  Scotland. 
Smith  was  president  and  Mitchell  secretary  of  the 
new  corporation.  Subsequently  the  firm  of  George 
Smith  &  Company  was  created,  and  at  their  Chicago 
office  all  certificates  were  redeemable. 

As  it  happened,  the  moment  was  propitious.  The 
panic  of  1837,  which  had  closed  many  financial  estab- 
lishments, had  also  left  the  West  without  a  sufficient 


30     The  First  National  Bank  of  Chicago 

circulating  medium.  Both  Smith  and  Mitchell  enjoyed 
an  unblemished  reputation ;  so  when  they  began,  not- 
withstanding the  law  and  their  charter,  to  issue  "cer- 
tificates of  deposit,"  so-called,  these  latter  at  once 
attained  great  popularity.  Smith  was  a  thoroughly 
equipped  banker  and  a  scrupulously  honest  man. 
The  maintenance  of  the  credit  of  his  institution  was 
the  principal  object  always  held  in  view.  After  a 
bitter  struggle  with  the  decadent  state  banks  his  paper 
was  forced  into  general  circulation,  and  of  the  entire 
amount,  $1,470,000  issued,  every  bill  presented  at  the 
counters  of  the  various  agencies  which  existed  in  the 
western  states  was  redeemed  at  par.  This  record  is 
unparalleled  by  that  of  any  other  institution  doing 
business  in  Illinois  in  those  early  days.  Absolute 
confidence  was  inspired  in  the  people;  and  under  such 
auspicious  conditions  the  corporation  flourished  and 
its  founders  amassed  wealth.  The  flagrant  violation 
of  the  terms  of  the  charter  aroused  the  ire  of  the  Wis- 
consin legislature,  and  finally,  in  1846,  it  was  by 
resolution  declared  forfeited,  but  this  action  created 
scarcely  a  ripple  in  the  business  of  the  company.  Its 
repeatedly  proven  ability  to  weather  financial  crises  had 
obtained  for  its  certificates  a  widespread  circulation, 
and  the  stringent  necessity  of  the  times  caused  its 
opponents  to  hesitate.  In  1852,  after  the  passage  of 
the  general  statute,  an  attempt  was  made  to  impose 
special  limitations  upon  Smith  and  his  associates. 
The  effort  then  failed,  but  the  legislature  again  soon 


The  Inception  of  Chicago  Banking        31 

interfered  by  an  act  which  declared  certificates  of 
deposit  illegal  and  prohibited  their  use.  The  antici- 
pated effects  of  this  movement  were,  however, 
thwarted.  The  insurance  company  was  forthwith,  in 
1853,  reorganized,  by  Alexander  Mitchell,  under  Wis- 
consin law,  as  a  bank;  and  the  Bank  of  America  came 
into  existence  in  Illinois.  Smith  then  Avent  to  Georgia, 
bought  two  banks,  consolidated  them,  and  commenced 
to  manufacture  notes.  This  paper  was  sent  in  large 
quantities  to  the  Northwest ;  relying  upon  the  credit  of 
its  maker,  the  people  commonly  accepted  it;  it  became 
extensively  current,  and  was  always  redeemed.  But 
by  1855  it  was  evident  that  the  West  had  enough  cur- 
rency, and  the  frequent  embarrassment  of  being  obliged 
to  refund  these  issues  soon  led  to  the  abandonment 
of  the  speculation.  Smith  finally  seems  to  have 
been  satisfied  with  his  success,  and  after  withdrawing, 
in  1857,  from  active  participation  in  these  enterprises, 
returned  to  Great  Britain,  in  i860,  with  $10,000,000. 
In  1900  he  died  at  London,  a  bachelor,  aged  ninety- 
one  years,  and  leaving  an  estate  valued  at  $50,000,000. 
He  was  a  notable  figure  in  both  hemispheres.  Alex- 
ander Mitchell,  who  succeeded  him  in  his  banking 
operations,  gradually  restricted  his  energies  to  the  state 
of  Wisconsin. 

While  "Smith's  Bank,"  as  it  was  popularly  called, 
enjoyed  such  a  large  share  of  public  esteem,  there 
were  still  several  other  houses  endeavoring  to  compete 
with  it.     Among  them,  in  1844-50,  Murray  &  Brand, 


32      The  First  National  Bank  of  Chicago 

later  Alexander  Brand  &  Company ;  Newberry  & 
Burch,  subsequently  I.  H.  Burch  &  Company;  Elijah 
Swift;  Griffin  &  Vincent;  R.  K.  Swift;  J.  Coe  Clarke; 
Curtis  &  Tinkham;  D.  C.  Eddy;  the  Mississippi 
Marine  and  Fire  Insurance  Company;  and  the  Agency 
of  the  Farmers'  and  Mechanics'  Bank,  might  be  men- 
tioned. 

In  185  I,  after  the  passage  of  the  Free  Banking  Act, 
most  of  these  firms  had  disappeared.  Those  which 
survived,  besides  George  Smith  &  Company,  were 
Brand  &  Company,  I.  H.  Burch,  Jones  &  Patrick, 
Tucker,  Bronson  &  Company,  and  R.  K.  Swift. 

During  the  decade  between  1850  and  i860  Chicago 
increased  its  population  from  30,000  to  120,000  inhabi- 
tants. The  rapidly  growing  financial  and  commercial 
interests  of  the  city  exacted  a  commensurate  expan- 
sion of  banking  facilities.  The  adoption  of  general 
legislation  in  1851,  under  which  private  bankers  might 
legally  conduct  their  business,  marked  the  opening  of 
a  new  era  in  the  economic  development  of  the  com- 
munity. The  Marine  Bank  had  the  distinction  of 
being  the  first  institution  thus  incorporated  in  Chicago, 
having  perfected  its  organization  on  January  13,  1852  ; 
J.  Young  Scammon,  who  had  been  at  the  head  of  the 
Chicago  Marine  and  Fire  Insurance  Company,  which 
this  bank  succeeded,  was  elected  president,  and  Edward 
I.  Tinkham  cashier.  Its  capital,  originally  fixed  at 
$50,000,  was  in  May,  1852,  augmented  to  $550,000, 
and  its  issue  of  bills  was  $99,000.     Within  the  year 


The  Inception  of  Chicago  Banking        ^3 

the  Merchants'  and  Mechanics'  Bank  (Boone  &  Bron- 
son) ;  the  Chicago  Bank  (Burch  &  Company) ;  the 
Commercial  Bank  (the  Southwestern  Plank  Road 
Company) ;  the  Chicago  City  Bank  (Bradley  &  Curtis) ; 
the  Union  Bank  (Forrest  Bros.  &Co.);  the  Bank  of 
America  (George  Smith  &  Co.);  the  Bank  of  Com- 
merce (Davidson  &  McCalla);  the  Farmers'  Bank 
(Chase  Bros.  &  Co.);  the  Exchange  Bank  (H.  A. 
Tucker);  and  the  Bank  of  Chicago  (Seth  Paine  &  Co.) 
came  into  existence.  In  spite  of  the  strenuous  efforts 
of  many  of  these  concerns  to  conform  strictly  to  the 
law,  Smith's  certificates  of  deposit  were  still  current; 
so  that  in  the  end  his  competitors  were  obliged  to  hit 
upon  the  expedient  of  meeting  him  on  his  own  ground 
by  likewise  issuing  similar  acknowledgments  of  in- 
debtedness alongside  of  their  regularly  authorized 
notes.  While  all  endeavors  to  drive  Smith  out  of  the 
field  failed,  the  other  banks,  by  recourse  to  this  prac- 
tice, naturally  strengthened  their  foothold. 

Among  all  the  early  financial  undertakings  of  Chi- 
cago, that  of  Seth  Paine,  who  proposed  to  manage  his 
affairs  on  Christian  and  moral  principles,  deserves 
special  notice.  After  a  short  and  ephemeral  career, 
his  establishment  was  closed  by  the  courts,  while  its 
owner  sought  more  favorable  fields  for  the  exercise  of 
his  philosophy. 

The  so-called  "Bank  War"  ensued,  when  the 
legally  incorporated  associations  united  in  an  attack 
on  the  violators  of  the  law.      Several  individuals  were 


34     The  First  National  Bank  of  Chicago 

indicted,  but  without  avail,  and  appeal  was  made  to 
the  legislature  for  redress.  In  the  spring  of  1853  the 
act  which  rendered  independent  banking  to  all  intents 
and  purposes  a  crime  was  passed,  and  the  contest 
thus  decided.  Then  the  competition  among  the  char- 
tered institutions  became  more  and  more  severe  in  the 
attempt  to  force  the  weaker  concerns  to  the  wall. 

The  panic  of  1857  brought  misfortune  to  many 
aspiring  banks;  some  yielded  to  urgent  necessity; 
others  voluntarily  went  into  liquidation ;  but  only  a 
few  survived.  Eastern  exchange  rose  first  to  ten  and 
then  to  fifteen  per  cent.  The  circulating  medium 
correspondingly  declined  in  value,  and  further  became 
more  mixed  and  unstable  in  character.  The  Bank 
Note  Reporter  was  at  every  man's  elbow.  In  i860 
the  Chicago  establishments,  like  all  others  throughout 
the  West,  saw  their  deposits  in  the  hands  of  the  public 
authorities  to  secure  their  issue  of  notes  suddenly 
suffer  an  enormous  depreciation.  The  southern  banks, 
upon  which  so  many  relied,  continued  to  fail,  and  the 
auditor  was  constantly  calling  for  additional  collateral. 
The  volume  of  outstanding  notes  was  immense;  and 
even  had  it  been  feasible,  it  was  in  fact  almost  impos- 
sible to  retire  them.  Embarrassment  and  confusion 
in  all  lines  of  business  inevitably  occurred.  The  action 
of  the  legislature,  in  1861,  prohibiting  the  acceptance 
by  the  auditor  of  bonds  other  than  those  of  the  United 
States  or  of  Illinois  was  the  final  stroke  to  the  career 
of  most  of  the  local  institutions.     The  majority  closed 


The  Inception  of  Chicago  Banking        25 

their  doors  and  few  were  reorganized.  Some  strug- 
gled with  destiny  for  two  or  three  years  longer,  until 
the  National  Banking  Act  drove  them  out  of  existence 
as  creatures  of  the  state. 

The  banks  of  Chicago  suffered  the  same  fate  as  all 
the  others  of  the  West,  which  were  the  product  of 
laws,  perhaps  theoretically  well  designed,  but  practi- 
cally founded  upon  false  conceptions,  and  in  execution 
loosely  enforced.  The  great  primary  fact  to  be 
observed  in  connection  with  their  downfall  is  the  loss 
of  credit  by  the  southern  states.  So  long  as  the 
securities  of  the  latter  were  sound  and  at  par,  this 
method  of  banking  had  a  reasonably  reliable  basis. 
With  the  outbreak  of  war,  and  the  fall  in  such  holdings, 
the  banks  lost,  as  it  were,  their  original  capital,  and 
were  infallibly  obliged  to  suspend.  Therefore,  it  may 
be  truthfully  said  that  the  Rebellion  wrecked  them, 
and  in  consequence  imposed  throughout  this  section 
widespread  financial  losses  and  hardships.  In  the 
end,  however,  it  was  to  be  the  occasion  for  the  radical 
remodeling  of  the  entire  banking  system  of  the  coun- 
try, which,  thenceforth,  established  upon  solid  and 
substantial  principles,  was  to  be  subjected  to  national 
control. 


CHAPTER  IV 

THE  NATIONAL  BANKING  ACT 

The  development  of  the  banking  system  of  the 
United  States  is  an  excellent  illustration  of  the  recip- 
rocal effects  which  political  and  financial  conditions 
exert  upon  one  another:  it  is  also  a  strong  proof  of 
the  capability  of  the  American  people  so  to  mold 
institutions,  however  disparaged  they  may  at  one  time 
have  been,  that  they  shall  ultimately  be  for  the  welfare 
of  the  nation.  To  meet  the  exigencies  of  civil  strife 
without  any  extension  of  the  resources  of  the  govern- 
ment was  from  the  outbreak  of  hostilities  believed  to 
be  impossible;  hence  the  Secretary  of  the  Treasury, 
Hon.  Salmon  P.  Chase,  appealed  to  Congress  at 
the  December  session  of  1861  to  afford  relief.  The 
suggestions  then  made,  although  they  failed  to  win 
immediate  approval,  in  fact  served  as  the  framework 
of  the  law  which  was  passed  some  fifteen  months  sub- 
sequently. The  National  Banking  Act  was  therefore 
an  incident  to  the  war;  whether  or  not  it  would  in 
any  case  have  been  elaborated  may  be  a  legitimate 
question.  Scarcely  any  one  who  realizes  the  situation 
as  existing  just  prior  to  this  period  can  doubt  that 
some  national  method  of  control  would  sooner  or  later 
have  been  inaugurated.  Strangely  enough  the  pri- 
mary purpose,   which  was  contemplated  by  the  pro- 

36 


The  National  Banking  Act  37 

meters  of  the  plan,  was  not  achieved,  for  the  conflict 
was  at  an  end  before  the  material  aid  rendered  to  the 
treasury  by  the  newly  adopted  methods  was  appre- 
ciable. 

With  the  termination  of  the  crisis  which  occa- 
sioned the  passage  of  the  act,  it  might  have  been  sur- 
mised that  the  feeling  of  distrust,  which  had  often 
frustrated  the  introduction  of  any  similar  project, 
would  again  prevail.  Such,  fortunately,  was  not  the 
case.  Opportunity  was  not  lacking  to  observe  the 
advantages  of  the  system  over  those  locally  in  vigor 
within  the  diiTerent  states.  The  fundamental  prin- 
ciples involved  were  deemed  by  the  large  majority  to 
be  correct;  practically  also  the  results  were  favorable, 
so  that  for  the  most  part  acceptable,  it  only  remained 
to  modify  and  improve,  as  experience  gradually  dic- 
tated. Under  the  stress  of  urgent  necessity  a  cen- 
tralization of  the  economic  interests  of  the  land,  equally 
as  important  for  progress  as  that  of  political  adminis- 
tration, had  been  accomplished.  The  war  furnished  the 
immediate  momentum,  but  the  contemporaneous  de- 
velopment of  natural  forces,  such  as  the  increasing  com- 
munity of  affairs  and  the  rapidity  and  multiplicity  of 
intercourse,  would  undoubtedly  not  have  permitted  the 
indescribable  chaos  of  state  banking  very  long  to  have 
subsisted.  The  influence  of  events  inexorably  tended 
to  some  solution  more  or  less  analogous  to  that  which 
actually  occurred.  How  the  older  methods  of  local 
supervision,  unreinforced  by  national  legislation,  would 


38      The  First  National  Bank  of  Chicago 

have  sufficed  or  proved  adequate  to  the  commercial 
and  financial  requirements  of  to-day  is  well  nigh  incon- 
ceivable. The  problem  must  at  some  time  have  been 
met  and  answered.  Extraneous  circumstances  may 
have  hastened  its  determination ;  the  men  of  the  six- 
ties who  grappled  with  it,  through  their  wisdom 
bequeathed  to  posterity,  as  the  issue  has  shown,  a 
country  not  only  reunited  but  likewise  endowed  with 
the  sinews  of  intrinsic  strength. 

For  several  years  preceding  the  war,  owing  to  a 
happy  conjunction  of  fortunate  conditions  at  home 
and  abroad,  the  tendency  to  an  increasing  prosperity 
had  been  constant.  The  movement  of  population 
toward  the  West,  consequent  upon  the  discovery  of 
gold  in  California,  had  been  stimulating  an  active  flow 
of  money  and  merchandise  across  the  continent ;  while 
the  troubles  in  Europe  were  occasioning  a  heavier 
demand  for  supplies  of  wheat  and  other  provisions. 
Banking  had  naturally  become  an  attractive  and  lucra- 
tive business.  The  legislation  of  the  various  states, 
as  then  in  force,  with  all  its  diversity  and  many  defects, 
was  in  theory  drafted  on  reasonably  wise  lines;  in 
execution  there  were  flaws,  but  with  time  and  experi- 
ence they  might  have  been  obviated.  There  was, 
however,  one  vital  spot  where  weakness  existed,  which 
under  a  certain  contingency,  might  prove  fatal.  When 
this  emergency  in  fact  arose,  the  inevitable  collapse 
necessarily  followed. 

The  secession  of  the  commonwealths,  which  were 


The  National  Banking  Act  39 

to  form  the  Confederacy,  was  the  death-knell  to  a 
large  number  of  banking  establishments.  In  that  day 
the  relative  share  of  the  South  in  the  commercial  trans- 
actions of  the  Union  was  vastly  more  important  than 
now.  Cotton,  tobacco,  lumber,  and  other  kindred 
products,  constituted  the  basis  of  a  trade  which,  in  its 
direct  and  more  remote  ramifications,  employed  a 
considerable  volume  of  capital,  promoted  the  exten- 
sion of  credit,  and  involved  the  regular  interchange  of 
other  innumerable  commodities. 

As  soon  as  Sumter  had  fallen,  the  cessation  of  this 
traflfic  was  felt;  depression  in  all  lines  of  business 
ensued.  Banks  in  the  West  failed  for  want  of  ready 
cash;  those  in  the  East  because  of  too  great  quantities 
in  their  vaults.  The  securities  upon  which  the  west- 
ern institutions  had  based  their  issues  of  notes  rapidly 
depreciated ;  they  found  themselves  unable  to  redeem 
their  circulation,  and  the  local  examiners  closed  their 
doors.  Such  was  the  abyss  into  which  the  domestic 
finances  of  the  country  were  plunged. 

The  needs  of  the  national  treasury  were  even  more 
exigent.  The  enormous  expenditures  suddenly  im- 
posed for  the  equipment  of  armies  and  the  preparation 
of  fleets  startled  the  people  and  strained  every  finan- 
cial nerve.  Congress  was  granting  leave  to  borrow, 
while  loan  after  loan  was  being  offered  on  the  market, 
where  only  with  some  difficulty  they  were  placed.  At 
first  it  was  confidently  believed  that  peace  would  be 
re-established  in  three,  then  in  six,  nine  months,  or  a 


40     The  First  National  Bank  of  Chicago 

year,  and  at  length  the  wisest  men  knew  not  when. 
As  the  magnitude  of  the  conflict  gradually  dawned 
upon  the  intelligence  of  those  in  authority,  it  became 
evident  that  some  regular  method  of  procuring  the 
necessary  funds  must  be  devised.  The  credit  of  the 
Union  must  be  rescued  from  the  mistrust  which  was 
everywhere  apparent. 

Secretary  Chase,  in  his  annual  report,  presented  to 
Congress  in  December,  1861,  proposed  two  means  of 
relieving  the  treasury.  The  issue  of  United  States 
notes,  payable  on  demand,  to  replace  those  emitted 
by  the  state  banks,  which  should  be  retired,  was  one 
suggestion ;  permission  to  duly  empowered  organiza- 
tions upon  certain  conditions  to  put  into  circulation 
bills  furnished  them  by  the  government,  their  redemp- 
tion in  specie  to  be  guaranteed  and  regulated  by  the 
United  States,  was  the  other.  Out  of  the  latter  idea 
the  legislation  now  in  force  was  evolved. 

Let  it,  nevertheless,  not  be  assumed  that  the  law, 
even  as  originally  passed  by  Congress,  sprang  complete 
and  finished  from  the  brain  of  any  one  man.  On  the 
contrary,  the  framework,  which  financiers  might  seek 
to  adapt  to  the  needs  of  the  nation,  already  existed; 
the  fundamental  principles  had  been  established  by 
slow  growth.  From  the  inauguration  of  the  govern- 
ment under  the  Constitution  there  had  been  a  conflict 
between  the  administration  at  Washington  and  the 
local  legislatures  for  the  control  of  the  financial  inter- 
ests of  the  country.     The  struggle  between  those  who 


The  National  Banking  Act  41 

favored  the  system  of  a  monopoly,  as  prevalent  for 
the  most  part  in  Europe,  and  the  advocates  of  abso- 
lutely unrestricted  freedom  for  banking,  was  pro- 
longed. From  time  to  time  the  balance  had  swung 
from  one  side  to  the  other.  Nevertheless  some  lessons 
were  being  steadily  taught.  With  the  complexity  of 
monetary  operations,  and  for  the  common  welfare  of 
all  sections  of  the  Union,  it  was  manifest  the  national 
administration  was  best  fitted  to  deal.  Many  adverse 
to  the  theory  admitted  the  benefits  practically  con- 
ferred by  a  single  institution.  On  the  other  hand, 
those  who  might  have  been  partial  to  another  United 
States  Bank  perceived  the  advantages  of  elasticity,  as 
furnished  by  competition,  providing  that  some  super- 
vision be  exercised  by  a  central  authority.  Experience 
showed  that  the  honest  enforcement  of  banking  laws 
was  quite  as  important  as  their  skilful  preparation. 
The  chief  distinction  between  the  concerns  of  the  East 
and  those  of  the  West  was  that,  in  the  former  locality 
speculators  and  rogues  were  effectually  debarred  by 
the  vigorous  attitude  of  the  ofificials,  while  in  the  latter 
the  people  were  regarded  as  the  legitimate  prey  of 
scheming  and  avaricious  money-sharks.  The  idea  of  a 
comprehensive  system  exempt  from  partisan  interest 
and  influence  was  not  yet  born.  Hence  the  dif^culty 
of  framing  any  legislation  free  of  suspicion  of  some 
ulterior  motive.  There  was  always  one  candidate  and 
his  adherents  for,  the  other  against,  any  proposition 
which  might  be  brought   forward.     Purely  scientific 


42     The  First  National  Bank  of  Chicago 

discussion  was  impracticable.  When  there  was  not 
reason  there  was  fear.  With  a  full  recognition  of  the 
defects  of  banking,  as  then  regulated,  it  seemed  for 
many  years  futile  to  attempt  to  evolve  any  adequate 
plan  which  would  meet  the  exigencies  of  the  world  of 
finance,  and  still  not  become  the  engine  of  ambitious 
politicians. 

The  germ  thought  of  the  National  Banking  Act 
can  be  traced  back  to  the  brain  of  Alexander  Hamil- 
ton;  he  it  was  who  suggested  to  "bank  upon  the 
national  debt  as  the  best  available  capital."  Dallas, 
when  Secretary  of  the  Treasury,  in  1815,  Albert  Galla- 
tin in  1 83 1,  and  Professor  John  McVickar,  of  New 
York  state,  about  the  last-mentioned  date,  proposed 
various  other  measures  which  they  believed  needful 
to  inspire  public  faith  in  the  management  of  banks. 

As  the  Civil  War  progressed,  the  embarrassment  of 
the  government  steadily  and  vastly  augmented.  Not- 
withstanding every  effort  on  the  part  of  the  adminis- 
tration and  the  co-operation  of  Congress,  the  condition 
of  the  finances  remained  serious.  Loan  after  loan 
was  made,  far  in  excess  of  every  anticipation,  and  still 
more  money  was  always  wanted.  The  government 
had  been  obliged,  as  the  result  of  its  necessities,  to 
overturn  many  old-established  usages.  More  and 
more  it  was  forced  to  disregard  all  precedents  and 
embark  upon  new  and  untried  paths.  The  supreme 
consideration  of  self-protection  was  its  only  guide. 

The  suggestion  of  Mr.  Chase  to  issue  to  banking 


The  National  Banking  Act  43 

institutions  notes  subject  to  national  control,  to  be 
guaranteed  by  deposits  of  United  States  bonds  and 
otherwise,  as  might  be  deemed  advisable,  was  not  by 
any  means  unanimously  approved.  The  state  banks, 
naturally  fearing  that  their  privileges  might'be  consid- 
erably curtailed,  strongly  antagonized  it.  The  draft 
of  the  proposed  act  was  taken  bodily  from  the  laws  of 
those  states  which  appeared  to  have  attained  the 
greatest  success  under  the  free  banking  system,  and 
sections  covering  the  features  of  the  securities  to  be 
pledged  and  the  methods  of  supervision  were  added. 
The  measure  thus  prepared  was  presented  to  the 
House  on  July  11,  1862,  by  Mr.  Hooper  of  Massa- 
chusetts. The  Ways  and  Means  Committee,  to  which 
it  was  referred,  subsequently  reported  it  adversely, 
and  there  the  matter  rested.  Meanwhile  a  legal  tender 
bill  was  passed,  but  the  Secretary  of  the  Treasury 
nevertheless  continued  to  insist  upon  the  feasibility  of 
his  favorite  project,  with  the  view,  as  he  reiterated,  of 
"maintaining  the  public  credit  and  providing  for  the 
public  wants,"  to  secure  "one  sound,  uniform  circu- 
lation of  equal  value  throughout  the  country  upon  the 
foundation  of  national  credit  combined  with  private 
capital." 

The  next  step  was  taken  in  the  Senate.  On  Janu- 
ary 26,  1863,  Mr.  Sherman  presented  to  that  body 
the  outline  of  a  National  Currency  Act.  Upon  the 
report  of  the  finance  committee  a  lengthy  discussion 
ensued.     On  the  one  hand,  the  opposition  was  voiced 


44     The  First  National  Bank  of  Chicago 

by  Senator  Collamer  of  Vermont,  who  expressed  his 
opinion  at  length ;  on  the  other,  Senator  Sherman,  a 
vigorous  advocate  of  the  administration,  championed 
the  plan.  After  protracted  debate  the  measure  finally 
passed,  on  February  12,  1863,  by  a  vote  of  23  to  21. 
When  it  came  up  in  the  House,  several  ineffectual 
attempts  were  made  to  amend,  and  dilatory  tactics 
were  employed  to  defeat  it,  but  it  was  eventually 
carried,  on  February  20,  1863,  by  78  to  64.  With 
the  signature  of  the  President,  on  February  25,  1863, 
the  National  Currency  Act,  as  it  was  then  called, 
went  into  operation, 

Hon.  Hugh  McCulloch,  the  first  Comptroller  of 
the  Currency,  in  his  report  of  November  28,  1863, 
pointed  out  several  defects  in  the  law.  Beginning  on 
March  i,  1864,  the  subject  was  again  before  Con- 
gress. After  a  long  and  acrimonious  debate  in  both 
Houses,  the  revised  measure  was  passed  and  signed 
by  the  President  on  June  3,  1864.  Since  that  date 
various  supplementary  projects  and  amendments  have 
at  times  engaged  the  attention  of  Congress,  and  little 
by  little  this  legislation  has  been  modified,  extended, 
and  improved.* 

*  Some  of  the  features  which  have  been  incorporated  or 
revised  in  the  law,  are  the  provisions  for  reports  at  the  discretion 
of  the  Comptroller,  the  distribution  of  the  circulation,  its  increase 
and  decrease,  the  change  of  the  name  of  the  act  to  the  National 
Banking  Act,  the  abolition  of  redemption  agencies,  the  establish- 
ment of  a  central  bureau  for  this  purpose  in  the  United  States 
Treasury,  the  methods  of  examination,  the  Resumption  Act  of 
1875,  the  sale  of  bonds,  the  over-certification  of  checks,  the 
measures  of  1881,  by  which  the  banks  were  in  effect  obliged  to  buy 


The  National  Banking  Act  45 

Without  elaborating  on  this  gradual  evolution,  it 
may  nevertheless  be  permissible  to  recall  the  main 
fact,  how  well  the  national  banking  system  has  fulfilled 
the  anticipations  of  its  earliest  advocates,  and  how  ill- 
founded  were  the  fears  and  misgivings  of  those  who 
opposed  its  inauguration  or  hesitated  to  accept  it. 
Its  initiation  in  the  midst  of  the  din  of  arms  signalized 
the  opening  of  a  new  epoch  in  the  economic  develop- 
ment of  the  nation.  With  the  adoption  of  this 
measure,  which  afforded  the  banking  interests, 
without  favor  or  prejudice,  the  opportunity  for  uni- 
formity, and  extended  to  them  the  care  and  regulation 
of  the  national  government,  the  death-knell  to  the 
heresies  and  blunders  of  the  different  states  Avas 
sounded.  Both  the  motives  and  possibilities  of  that 
peculiarly  unjustified  and  banefully  destructive  com- 
petition among  various  localities  were  removed.  A 
single  standard  of  conduct  and  a  code  of  morals  were 
evolved.  To  those  institutions,  which  availed  them- 
selves of  the  privileges  of  the  law,  the  government 
affixed  the  badge  of  respectability,  while  to  their 
patrons  were  pledged  its  guarantee  of  good  faith, 
honest  dealing,  and  the  highest  confidence  inspired 
by  integrity.      Not  only  the  direct  results  felt  by  the 

additional  bonds,  the  act  of  1882  for  the  extension  of  the  corporate 
existence  of  national  banks,  the  deposit  of  public  moneys,  and  the 
creation  of  central  reserve  cities.  An  important  usage,  developed 
by  the  banks  themselves,  is  the  employment  of  clearing-house 
certificates,  by  which  the  institutions  in  many  of  the  large  cities 
have  devised  a  means  of  mutual  aid  in  periods  of  financial 
distress. 


46     The  First  National  Bank  of  Chicago 

establishment  of  several  thousand  national  banks  were 
remarkable,  but  the  reform  effected  in  state  banking 
laws  themselves  must  likewise  be  reckoned  almost  as 
important. 

The  capital  of  the  4,357  national  banks  in  opera- 
tion on  February  25,  1902,  was  $667,381,231;  their 
surplus,  $294,95  1 ,786.67 ;  their  undivided  profits  were 
$154,653,757.79;  their  total  resources,  $5,843,048,- 
720.14;  their  total  deposits,  $3,827,172,326.28;  their 
loans  and  discounts,  $3,128,627,094.44.  Notwith- 
standing the  magnitude  of  these  figures,  far  in  excess 
of  any  dreamed  by  those  who  antagonized  the  original 
project,  the  dire  forebodings  then  expressed  have  not 
been  justified.  On  the  other  hand,  every  declaration 
made  by  its  champions  has  been  realized.  In  the 
words  of  Senator  Sherman,  "A  uniform  currency  has 
been  established;  a  feeling  of  nationality  has  been 
encouraged ;  the  credit  and  faith  of  the  country  have 
been  maintained  unimpaired." 


THE  FIRST  NATIONAL  BANK 
OF    CHICAGO 


/ 


EDMUND  AIKEN. 


CHAPTER  V 

THE  FIRST  NATIONAL   BANK  OF  CHICAGO 

First  Organization,   1863- 1882 
No.  8 

The  financial  conditions  existing  in  Chicago  at  the 
outbreak  of  the  Civil  War  were  not  in  the  least  flatter- 
ing. Although  in  November,  i860,  the  situation  had 
been  most  auspicious,  yet  within  two  months  after  that 
date,  by  reason  of  the  decline  in  southern  securities, 
the  notes  of  Illinois  banking  corporations  were  at  a 
serious  discount ;  and  local  banks  unanimously  refused 
to  accept  those  which  were  considered  the  most  doubt- 
ful in  value.  In  January,  1861,  the  legislature  passed 
the  act  prescribing  that  only  United  States  and  Illinois 
stocks  should  be  available  for  deposit  with  the  auditor. 
While  in  a  few  instances  the  institutions  affected  were 
able  to  comply  with  this  requirement,  the  result  for 
the  most  part  was  the  voluntary  liquidation  of  the 
state  organizations. 

At  the  end  of  1861  the  banks  doing  business  under 
the  laws  of  Illinois,  and  located  at  Chicago,  were  the 
Marine  Bank  of  Chicago;  the  Union  Bank  of  Boston 
(Ruxton  &  Co.,  agents);  the  Grundy  County  Bank  of 
Morris;  the  Sycamore  Bank  of  Sycamore;  the  Pro- 
ducers' Bank  of  McLeansboro  (H.  Doolittle  was  agent 

49 


50     The  First  National  Bank  of  Chicago 

of  the  last  three  named  institutions) ;  the  Treasury 
Bank  of  Griggsville  (Western  Marine  and  Fire  In- 
surance Co.,  agents);  and  Reaper's  Bank  of  Fairfield 
(Merchants'  Savings  Loan  and  Trust  Co.,  agents). 
About  this  time  the  legislature  also  suggested  the 
charter  of  an  Illinois  State  Bank,  but  this  proposition, 
when  submitted  to  popular  vote,  was  rejected  by  a 
large  majority. 

The  total  volume  of  the  notes  of  all  the  banks 
having  ofifices  at  Chicago  was  slightly  less  than  $150,- 
000,  a  sum  utterly  insufificient  to  satisfy  the  demands 
of  the  community;  hence  bills  issued  outside  of  the 
state,  and  not  redeemable  within  its  boundaries,  were 
necessarily  put  in  circulation.  Indeed  the  city  was 
soon  notorious  as  the  center  from  which  great  quan- 
tities of  this  paper  were  scattered  broadcast.  Thus 
the  people  suffered,  trade  was  uncertain,  and  business 
was  prosecuted  for  the  next  eighteen  months  under  a 
cloud  of  difificulties. 

Meanwhile  the  discussion  of  the  proposed  National 
Currency  Act  was  progressing  at  Washington,  and  the 
divergence  of  opinion,  aroused  throughout  the  coun- 
try by  its  consideration,  was  showing  that  many 
well-informed  financiers  were  looking  forward  to  an 
improvement  in  monetary  affairs,  should  such  a  meas- 
ure ever  become  law.  Some  of  these  men  resided  in 
Chicago,  and  during  the  winter  of  1862-63  they  fre- 
quently met  and  talked  over  the  prospects  of  the  pro- 
jected   legislation.      Prominent    among    them    were 


First  Organization,  1863-1882  51 

Edmund  Aiken,  then  about  fifty  years  of  age,  and 
sole  member  of  the  private  banking  firm  of  Aiken  & 
Norton;  Samuel  M.  Nickerson,  a  young  man  of  thirty- 
two,  who  had  only  recently  arrived  here,  and  was 
temporarily  engaged  in  the  distilling  business;  Byron 
Rice,  a  capitalist;  Samuel  W.  AUerton,  a  packer; 
Benjamin  P.  Hutchinson,  a  member  of  the  Board  of 
Trade,  and  several  others.  The  place  of  these  infor- 
mal gatherings  was  usually  at  the  of^ce  of  Aiken  & 
Norton,  in  Room  i  of  the  old  Board  of  Trade  Build- 
ing on  the  northeast  corner  of  La  Salle  and  Water 
streets.  Chicago  had  at  this  time  a  population  ap- 
proximating 150,000,  and  it  was  evident  to  those 
endowed  with  reasonable  foresight  that  this  city  was 
destined,  as  the  years  advanced,  to  a  higher  and 
higher  degree  of  prosperity.  With  such  a  flattering 
future  it  was  likewise  apparent  that  the  banking  facili- 
ties then  existing,  even  in  those  days  of  civil  strife, 
were  inadequate;  moreover,  the  institution  which 
should  first  prove  itself  worthy  of  public  confidence 
would,  when  the  war  closed,  have  an  enormous  advan- 
tage over  all  competitors.  The  community  had  out- 
grown its  infancy;  conditions  had  been  modified; 
there  was  not  merely  room  for,  but  an  urgent  need  of,  a 
well-organized  bank,  with  ample  capital  and  under  a 
management  both  honest  and  skilled  in  the  theory 
and  practice  of  banking. 

The  movement  was  opportune,  and  the  men  were 
thoroughly  fitted  to  grasp  its  possibilities.     With  the 


52      The  First  National  Bank  of  Chicago 

passage  of  the  National  Currency  Act,  and  its  approval 
by  the  President,  the  little  group  of  Chicagoans  felt 
that  the  hour  for  action  had  come.  Not  a  single  day 
was  needlessly  lost  in  perfecting  their  plans.  The  full 
story  of  the  preliminary  negotiations  cannot  now  be 
told,  for  time  has  laid  its  unsparing  hand  on  some 
who  might  have  recalled  many  entertaining  reminis- 
cences, while  others,  who  still  survive,  daily  engrossed 
for  well-nigh  forty  years  in  the  tumult  and  confusion 
of  the  busy,  exciting  city,  cannot  more  than  sketch 
from  clouded  recollection  the  bare  outline  of  events. 
The  first  step  of  which  ofificial  record  exists  is  the 
meeting  of  the  interested  parties,  presumably  in  the 
office  of  Aiken  &  Norton,  on  May  i,  1863.  Upon 
that  occasion  formal  articles  of  association,  as  pre- 
scribed by  law,  were  adopted.  The  chief  provisions 
were:  that  the  name  of  the  corporation  should  be 
"The  First  National  Bank  of  Chicago";  that  the 
capital  should  be  $100,000,  and  might  be  augmented 
to  a  sum  not  in  excess  of  $1,000,000;  a  two-thirds 
vote  of  the  board  of  directors  being  always  requisite 
for  such  a  purpose;  the  additional  stock  to  be  distrib- 
uted pro  rata  among  such  of  the  stockholders  as  might 
wish  to  take  their  respective  shares.  Thirty  per  cent 
of  the  original  subscriptions  was  to  be  taken  and  paid 
for  at  once,  and  the  remainder  at  such  times  as  should 
thereafter  be  determined.  The  directors  were  fixed 
at  nine,  their  qualifications  to  be  the  ownership  of 
stock  equivalent  in  value  to  five  per  cent  on  the  first 


First  Organization,  i 863-1 882  53 

$100,000,  and  one  per  cent  upon  any  increase  of  capi- 
tal over  such  amount.  The  day  set  for  the  election 
of  the  first  board  was  May  7,  1863,  the  members  then 
to  be  chosen  to  serve  until  the  second  Tuesday  in 
January,  1864,  whereupon  they  should  be  annually 
elected.  The  term  for  which  the  association  was 
formed  was  limited  to  expire  on  April  30,  1882,  being 
nineteen  years  from  the  date  of  this  instrument.  The 
signers  and  the  number  of  shares  held  by  each  of  them 
were,  respectively: 

Shares.  Shares. 

Edmund  Aiken        -        -     175  Samuel  M.  Nickerson  -     100 

Byron  Rice            -        -           50  Samuel  W.  Allerton      -  100 

Benjamin  P.  Hutchinson       175  John  B,  Sherman      -  -     100 

Tracy  J,  Bronson      -        -     100  James  C.  Fargo    -        -  50 

George  N.  Kennedy     -           50  Samuel  G.  D.  Howard  -     100 

All,  with  one  exception,  were  residents  of  Chicago; 
George  N.  Kennedy  lived  at  Syracuse,  New  York. 

Pursuant  to  the  articles  of  association,  the  stock- 
holders again  assembled,  on  May  7,  1863,  at  the  office 
of  Aiken  &  Norton,  and  thereupon,  apparently  with 
unanimity,  elected  as  directors  the  following  named 
gentlemen:  Samuel  W.  Allerton,  Tracy  J.  Bronson, 
Samuel  M.  Nickerson,  Byron  Rice,  Benjamin  P. 
Hutchinson,  Edmund  Aiken,  Samuel  G.  D.  Howard, 
James  C.  Fargo,  and  John  B.  Sherman.  The  board 
thus  constituted,  having  at  once  met,  chose  Edmund 
Aiken  president,  and  James  C.  Fargo  vice-president. 
Subsequently,  on  May  22d,  Messrs.  Hutchinson, 
Howard,  and  Nickerson  were  appointed  a  committee 


54     The  First  National  Bank  of  Chicago 

to  assist  the  president  in  completing  the  organization 
and  making  other  preliminary  arrangements.  On 
May  27th,  $30,000  of  the  capital  having  been  paid 
in,  that  fact  was  communicated  to  Hon.  Hugh 
McCuUoch,  Comptroller  of  the  Currency.  The  origi- 
nal intention  had  been  to  open  the  doors  of  the  estab- 
lishment on  June  1st,  but  some  unexpected  delays 
occurred.  The  Comptroller  likewise  did  not  finally 
act  upon  any  of  the  applications  before  him  until  June 
22d.  On  that  date  he  empowered  several  banks  to 
begin  business,  signing  almost  simultaneously  the 
necessary  authority.  The  First  National  Bank  of 
Chicago  was  the  eighth  institution  to  receive  his 
approval.  On  June  26th  the  board  of  directors  voted 
that  the  activities  of  the  bank  be  inaugurated  on  July 
I,  1863,  in  the  rooms  formerly  occupied  by  Aiken  & 
Norton,  which  had  already  been  secured  for  this  pur- 
pose. At  the  same  time  a  resolution  to  increase  the 
capital  to  $250,000  was  passed.  Prior  to  this  date, 
James  C.  Fargo  had  sold  his  stock,  and  was  thus 
disqualified  from  holding  office.  To  succeed  him 
as  vice-president,  Samuel  M.  Nickerson  was,  upon 
motion  of  B.  P.  Hutchinson,  chosen  on  June  29, 
1863;  then  entering  upon  that  period  of  indefatigable 
service  in  behalf  of  the  bank  which  was  to  extend  over 
more  than  a  third  of  a  century.  At  the  same  meet- 
ing Edward  E.  Braisted  was  appointed  cashier. 

The  Chicago  Daily  Tribune  of  June  30,  1863,  con- 
tained the  following  announcement : 


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^  K  k  ,1 

Mi 

ii 


THE   FIRST  BUILDING  OF  THE  FIRST  NATIONAL  BANK, 
Southwest  Corner  La  Salle  and  Lake  Streets. 


First  Organization,  1863-1882  55 

"  The  First  National  Bank  of  Chicago  goes  into  operation  to- 
morrow, July  1st,  E.  Aiken,  Esq.,  President,  and  E.  E.  Braisted, 
late  of  the  Loan  &  Trust  Co.,  Cashier.  The  stockholders  are 
among  the  most  active  and  substantial  business  men,  representing 
our  merchants,  lumber,  produce,  and  stock  dealers,  with  a  number 
of  our  leading  capitalists.  The  bank  opens  with  a  cash  capital  of 
a  quarter  million  of  dollars,  and  a  further  increase  will  be  added 
as  the  wants  of  the  business  public  shall  require.  The  president 
has  long  been  known  to  the  business  community  as  one  of  our 
most  active  and  prudent  bankers,  and  the  stockholders  and  the 
public  are  fortunate  in  the  selection  of  a  gentleman  for  so  impor- 
tant a  position,  who  so  thoroughly  understands  the  business  of  the 
city.  The  bank  will  open  at  the  former  ofifice  of  the  president, 
No.  22  La  Salle  street,  immediately  north  of  Coolbaugh  &  Co.'s 
Bank,  northwest  corner  of  Lake." 

From  the  day  of  its  inauguration  the  institution 
was  accorded  a  favorable  reception  by  the  people,  and 
during  the  first  three  months  of  its  existence,  gradu- 
ally gained  strength.  The  earliest  published  state- 
ment of  its  condition  appeared  on  October  i,  1863. 
At  the  close  of  banking  hours  on  the  preceding  day, 
September  30th,  the  situation  was: 

ASSETS 

Loans  and  discounts $149,650.00 

United  States  bonds  (par  value)       -        -        -        -  91,000.00 

Cash  Resources: 

Due  from  banks  (Eastern  exchange)     $109,773.73 
Checks  for  clearing  house  -        -        68,597.12 

Cash  on  hand        .        -  -  .  60,828.13 

239,198.98 


S479.848.98 
LIABILITIES 

Capital  stock -      205,000.0c 

Undivided  profits       -        - 1,759.49 

Deposits 273,089.49 

$479,848.98 


56      The  First  National  Bank  of  Chicago 

Although  the  bank  was  already  buying  United 
States  bonds,  not  any  circulating  notes  had  yet  been 
received  from  the  Comptroller  of  the  Currency.  How 
insignificant  the  foregoing  figures — while  in  themselves, 
and  for  that  day,  of  considerable  moment — seem,  as 
compared  with  those  contained  in  any  recent  report 
of  the  same  establishment.  From  such  a  modest 
beginning  one  of  the  largest  financial  organizations  on 
the  western  hemisphere  has  within  forty  years  devel- 
oped. 

The  next  incident  of  importance  was  the  election 
of  E.  G.  Hall,  on  November  11,  1863,  as  a  director  to 
succeed  James  C.  Fargo,  who  had  resigned.  Already 
the  rooms  occupied  by  the  bank  were  becoming  too 
small,  and  unfitted  for  its  growing  business;  the  officers 
were  looking  for  new  quarters.  At  the  meeting  of  the 
board,  December  8th,  the  action  of  the  president  in 
leasing  a  portion  of  the  main  floor  in  the  Exchange 
Block,  at  the  southwest  corner  of  Clark  and  Lake 
streets,  for  five  years,  at  an  annual  rental  of  $4,000, 
was  approved.  This  address  remained  unchanged 
until  the  end  of  1867.  On  the  same  day  the  directors 
also  passed  a  resolution  ordering  from  the  Comptroller 
of  the  Currency  the  sum  of  $200,000  in  circulating 
notes.  The  second  statement  issued,  showing  the 
aspect  of  affairs  on  December  30,  1863,  exhibited 
steady  progress  along  all  lines.      It  follows: 


First  Organization,  i 863-1 882  57 

ASSETS 

Loans  and  discounts $276,987.53 

United  States  bonds  (par  value)        ...        -  176,000.00 

Furniture  and  fixtures 201.62 

Cash  resources: 

Due  from  banks  (Eastern  exchange)    $64,141.73 
Checks  for  clearing  house       -        -  89,303.09 

Cash  on  hand 130,251.32 

Due  from  directors  ...  6,000.00 

289,696.14 

$742,885.29 

LIABILITIES 

Capital  stock  paid  in $300,000.00 

Undivided  profits 11,699.49 

Due  United  States  Treasurer 195,046.72 

Deposits 236,139.08 

$742,885.29 

The  totals  were  thus  very  nearly  $300,000  in  excess 
of  those  indicated  only  six  months  previously. 

The  first  regular  annual  election  of  directors  was 
held  on  January  12,  1864.  It  may  not  be  without 
interest  to  mention  the  names  of  the  stockholders  and 
the  number  of  shares  respectively  held  by  them  at  that 
time.  The  secretary  of  the  meeting  reported  the  vote 
cast  by  those  present  or  represented  by  proxy  as 
follows : 

Shares.  Shares. 

E.Aiken  .        -        -        -  212  M.  Talcott        -        -  -     100 

Byron  Rice       -        -        -      70  Samuel  G.  D.  Howard  70 

Henry  M.  Wilmarth     -           30  W.  N.  Brainard         -  -      50 

Benjamin  P.  Hutchinson  -  300  George  C.  Walker        -  50 

E.G.Hall     -        -        -           70  Tracy  J.  Bronson      -  -     150 

T.  H.  Seymour         -        -      50  Samuel  W.  Allerton     -  150 

S.  B.  Roath  -         -        -           30  Henry  M.  Shepard  -  -       50 

John  M.  Williams     -        -      50  Samuel  M.  Nickerson  -  100 

A.  Hurd        -        -        -          50  Horace  M.  Singer    -  -     100 


58      The  First  National  Bank  of  Chicago 

Whereupon  it  was  announced  that  Messrs.  Edmund 
Aiken,  Benjamin  P.  Hutchinson,  Samuel  W.  AUerton, 
Samuel  M.  Nickerson,  Byron  Rice,  Samuel  G.  D. 
Howard,  Tracy  J.  Bronson,  John  B.  Sherman,  and 
E.  G.  Hall  had  been  duly  elected  for  the  ensuing  year. 
The  board  immediately  met  and  chose  its  former  offi- 
cers to  succeed  themselves. 

As  suggestive  of  the  conservative  views  which  then 
prevailed  among  the  managers,  the  resolution  of  the 
directors  of  January  23,  1864,  reciting  that  "no  loan 
shall  be  made  with  or  without  collateral  to  any  indi- 
vidual or  firm  to  exceed  $50,000  without  the  approval 
of  the  board,"  should  be  noted.  During  the  spring 
of  the  same  year  the  stock  was  gradually  augmented 
to  $600,000.  The  bank  was  now  on  a  healthy,  sound, 
and  prosperous  basis.  The  men  who  had  brought  it 
into  existence  were  naturally  desirous  of  realizing  some 
direct  return  for  their  pains.  Nor  were  they  disap- 
pointed, for  on  May  2,  1864,  the  first  dividend  was 
declared.  The  net  earnings  for  the  period  prior  to 
the  preceding  day,  free  of  tax,  were  found  to  be  equal 
to  sixteen  per  cent  of  the  capital,  while  the  holders  of 
the  first  three  hundred  thousand  shares  issued  also 
received  pro  rata  the  five  per  cent  premium  which  had 
accrued  on  the  United  States  bonds.  Such  a  result 
of  one  year's  work  may  well  be  envied  by  financiers 
of  the  present  generation.  Soon  afterward  it  was 
determined  to  increase  the  volume  of  the  circulating 
notes,  as  soon  as  practicable,  to  $400,000. 


First  Organization,  1863-1882 


59 


On  October  i,  1864,  the  principal  items  included 
in  the  official  statement  were:  Loans  and  discounts, 
$809,730.94;  United  States  bonds,  $441,500;  cash 
resources,  $681,819.65;  capital  stock  paid  in,  $600,- 
000;  undivided  profits,  $66,752.88  ;  circulating  notes, 
$320,000;  deposits,  $946,579.95.  Again,  on  Novem- 
ber 15,  1864,  another  dividend  of  ten  per  cent  was 
distributed.  During  this  autumn  the  capital  was  fixed 
at  $750,000  and  the  circulating  notes  at  $600,000  in 
value.  Augustus  W.  Wheeler  was  appointed  assistant 
cashier  on  November  7th. 

The  next  year  opened  with  memorable  action  by 
the  board  of  directors,  when,  on  January  2,  1865,  it 
voted  to  increase  the  capital  stock  to  $1,000,000,  the 
highest  limit  provided  by  the  articles  of  association. 
Under  date  of  March  9th  the  cashier  certified  to  the 
Comptroller  of  the  Currency  that  the  full  amount  had 
been  paid;  $100,000  of  this  additional  sum  was  relin- 
quished for  allotment  to  new  stockholders.  Those 
who  subscribed,  and  the  respective  shares  awarded 
them,  were: 


Richards,  Crumbaugh  & 

Tillinghast     - 

-  $1,000 

Shaw  -        -        -        - 

SS.ooo 

John  McPherson 

8,000 

Grey,  Marshall  &  Co, 

8,000 

J.  S.  Sharp  &  Co.  - 

-     8,000 

William  B.  Keen  - 

5,000 

Martin  Ryerson 

5,000 

W.H.Crosby     - 

5,000 

S.  I.  Glover    - 

-     5,000 

Webster  &  Baxter 

5,000 

C.L.  Wilson  &  Co.    - 

5,000 

L.    Barbour    &    Calvin 

Fox  &  Howard 

-     5,000 

Day 

5,000 

Freeman,  Burt  &  Co. 

5,000 

D.  E.  Crane   - 

5,000 

Alonzo  Richmond 

-     3,000 

Kirk     -       - 

5,000 

L.  French  &  Co. 

2,000 

S.  D.  Kimbark 

3,000 

Gallup  &  Hitchcock 

-     2,000 

A.  E.  Bishop 

2,000 

6o     The  First  National  Bank  of  Chicago 

Early  stockholders,  other  than  those  elsewhere 
mentioned,  were  William  B.  Phillips,  Mancel  Talcott, 
William  B.  Kay,  S.  H.  Smith,  William  Moore,  J.  N. 
W.  Sherman  and  George  T.  Williams. 

On  February  lo,  1865,  A.  W.  Wheeler  severed  his 
connection  with  the  management,  having  previously 
resisfned  as  assistant  cashier.  The  United  States 
Treasurer  certified,  February  24,  1865,  that  the  bank 
had  on  deposit  bonds  to  the  total  of  $632,000,  of 
which  $572,000  were  as  security  for  circulation,  and 
$60,000  to  cover  public  moneys  in  its  possession. 
Another  important  event  was  the  approval  of  the 
charter  and  constitution  of  the  Chicago  Clearing 
House  Association.  By  this  act  the  institution 
became  a  member  of  that  organization. 

A  further  semi-annual  dividend  of  ten  per  cent  was 
declared  for  May  1st,  it  being  the  last  paid  at  that 
date.  To  conform  with  the  more  usually  prevailing 
practice  a  resolution  was  adopted  in  November,  1865, 
that  dividends  should  thereafter  be  payable  on  the 
first  days  of  January  and  July  respectively.* 

During  1865  there  had  not  been  any  change  in  the 
board  of  directors.  At  the  beginning  of  1866  all  the 
old  members,  except  S.  G.  D.  Howard,  were  re-elected  ; 
in  his  stead  Franklin  D.  Gray  was  named.  At  this 
same  time  the  bank  experienced  another  modification 

*  Not  any  further  notice  will  be  taken  of  this  item  in  the  text; 
as  the  bank  has  regularly,  with  one  or  two  rare  exceptions,  paid  a 
dividend  to  its  stockholders  twice,  and  more  recently  four  times, 
every  year.    A  complete  statement  will  be  found  in  the  appendix. 


SAMUEL  M.  NICKERSON. 


First  Organization,  1863-1882  61 

in  its  personnel  through  the  voluntary  retirement  of 
the  cashier,  E.  E.  Braisted.  This  gentleman  had 
rendered  great  service  in  helping  to  place  it  upon  a 
safe  foundation.  His  successor  does  not  appear  to 
have  been  at  once  selected.  Charles  J.  Schmitt  was, 
however,  appointed  assistant  cashier  on  January  9th, 
and  seems  to  have  performed  the  duties  of  the  higher 
post  during  several  ensuing  months,  until,  on  Decem- 
ber 3d,  Cornelius  R.  Field  was  chosen  to  fill  it. 

At  the  opening  of  the  next  year  (1867),  a  serious 
blow  was  sustained  in  the  death  of  President  Aiken, 
who  died  suddenly  of  heart  disease  on  January  12th, 
being  then  in  the  fifty-fifth  year  of  his  age.  Under 
his  management  the  institution  had,  within  a  brief 
period,  grown  to  be  one  of  the  financial  leaders  of  the 
West;  its  original  projector,  he  had  brought  it  to  its 
present  prosperous  condition.  Hence,  fear  was  natu- 
rally expressed  that  his  sagacity  and  counsel  might  be 
missed.  Fortunately,  however,  in  the  emergency,  the 
person  well  equipped  and  thoroughly  fitted  to  assume 
these  arduous  labors  was  at  hand.  On  January  23, 
1867,  Samuel  M.  Nickerson  was  promoted  to  the 
presidential  chair,  while  Franklin  D.  Gray  was  elected 
vice-president.  For  the  next  thirty  years  and  more 
these  two  men  were  associated  in  the  direction  of  the 
bank.  For  them  both  its  interests  became  their  chief 
care.  The  one  as  the  executive  head,  the  other  as  his 
adviser,  counselor,  and  friend,  strove  long  and  strenu- 
ously to  advance  the  welfare  of  the  corporation  which 


62      The  First  National  Bank  of  Chicago 

they  so  ardently  cherished.  At  the  annual  meeting 
held  this  same  month,  in  the  place  of  Messrs.  Bronson 
and  Sherman,  George  C.  Walker  and  Mancel  Talcott 
were  named  for  the  board  of  directors.  Subsequently, 
on  March  4th,  Henry  B.  Lewis  was  designated  to 
succeed  Mr.  Aiken  for  the  remainder  of  the  unexpired 
term.  At  a  slightly  later  date  (June  24,  1867)  George 
Webster  was  also  chosen  vice  Benjamin  P.  Hutchin- 
son, resigned. 

The  most  important  transaction  of  this  era  was  the 
purchase  of  the  lot  on  the  southwest  corner  of  State 
and  Washington  streets.  Vice-president  Gray,  who 
was  charged  with  the  negotiations,  secured  the  trans- 
fer of  this  piece  of  ground — measuring  fifty-five  feet 
on  State  street  by  eighty-four  feet  on  Washington 
street — during  the  last  week  in  March,  1867,  for  the 
sum  of  $83,500,  being  equivalent  to  $1,500  per  foot 
on  the  State  street  frontage.  The  conditions  of  pay- 
ment were  one-fourth  cash  and  balance  in  three  equal 
installments,  payable  one,  two,  and  three  years  after 
date,  bearing  interest  at  the  rate  of  seven  per  cent 
semi-annually.  In  September,  a  building  committee, 
consisting  of  Messrs.  Nickerson,  Walker,  Gray,  and 
Talcott,  was  appointed.  A  fire-proof  edifice  was  pro- 
jected, which  was  furnished  and  occupied  in  the  spring 
of  1868.     As  described  in  Industrial  Chicago: 

"The  old  First  National  Bank  building,  on  the  southwest  cor- 
ner of  State  and  Washington  streets,  was  completed*  in  1872  at  a 

♦This  should  read  "restored,"  as  just  stated  in  text.  The  building  was 
originally  finished  in  1868. 


THE    SECOND    BUILDING    OF    THE    FIRST    NATIONAL     BANK 
Southwest  Corner  State  and  Washington  Streets. 


First  Organization,  1863-1882  6;^ 

cost  of  $295,000,  $75,000  of  which  was  spent  on  restoration  after 
the  fire.  It  was  considered  a  fire-proof  house — iron,  stone,  and  brick 
being  the  exclusive  material,  but  it  did  not  prove  itself  so  in  the 
presence  of  the  great  fire  of  1871,  for  the  inner  vaults  were  the 
only  portions  of  the  building  untouched  by  fire.  Part  of  the  walls 
fell  in  and  the  iron  work  was  twisted  or  melted.  It  was  a  Floren- 
tine building,  with  balustraded  portico  in  cut-off  and  pediment 
from  the  cornice.  Prior  to  the  introduction  of  modern  houses  the 
old  First  National  Bank  was  considered  a  rare  architectural  work, 
and  was  spoken  of  in  connection  with  the  Palmer,  Tremont,  Field, 
and  other  leading  houses."* 

At  the  close  of  business  on  December  31,  1867,  the 
principal  items,  as  shown  by  the  statement  subse- 
quently published,  were:  Loans  and  discounts, 
$1,978,532,39;  deposits,  $2,125,069.83;  capital, 
$1,000,000;  surplus,  $100,000;  profit  and  loss,  $120,- 

477-83. 

The  annual  election  of  1868  resulted  in  the  choice 
of  the  same  directorate  and  of^cers.  On  March 
2d,  Byron  Rice  resigned  from  the  board,  and  two 
months  later  Henry  H.  Porter  was  elected  to 
succeed  him.  About  this  date  Messrs.  Gray  and 
Webster,  together  with  the  president,  were,  pursuant 
to  the  provisions  of  the  by-laws,  as  then  lately 
amended,  appointed  to  serve  as  a  "discount  commit- 
tee." 

During  the  summer  of  1868  a  momentous  change 
in  the  personnel  of  the  active  managers  occurred.  On 
July  13th  the  resignation  of  Cornelius  R.  Field,  as 
cashier,  was  accepted,  to  take  effect  on  the  first  of 
August   following.      Before  the   last  mentioned   day, 

*  Industrial  Chicago,  I.,  155. 


64     The  First  National  Bank  of  Chicago 

Lyman  J.  Gage,  then  assistant  cashier  of  the  Mer- 
chants' Loan  and  Trust  Company,  had  been  chosen 
his  successor.  Thenceforth  the  names  of  Mr.  Gage 
and  the  First  National  Bank  of  Chicago  were  for  many 
years  synonymous. 

On  September  7,  1868,  the  by-laws  were  again 
revised  so  as  to  provide  for  a  finance  committee,  in 
the  place  of  the  discount  committee,  to  be  composed 
of  the  president,  cashier,  and  one  other  director,  to 
the  care  of  which  the  details  of  financial  policy  were 
intrusted,  besides  the  authority  to  discount  bills, 
notes,  and  other  evidences  of  debt,  and  to  buy  and 
sell  bills  of  exchange.  Mr.  Walker  was  thereupon 
appointed  as  the  third  member. 

At  this  time,  among  all  the  financial  institutions  of 
Chicago,  the  First  National  Bank  was,  as  it  appears 
from  current  statistics,  in  the  lead  in  capital  and  sur- 
plus; in  loans  and  discounts,  and  in  deposits,  the 
Union  National  Bank  alone  surpassed  it. 

In  1869  George  C.  Walker  and  Henry  B.  Lewis 
retired  from  the  board  of  directors,  their  places  being 
filled  by  Frederick  Crumbaugh  and  Daniel  Thomp- 
son. Henry  R.  Symonds  was,  on  January  4th, 
chosen  assistant  cashier.  About  this  same  time 
George  D.  Boulton,  now  vice-president,  was  em- 
ployed as  a  book-keeper. 

On  October  9,  1869,  the  formal  report  to  the  Comp- 
troller was  as  follows : 


First  Organization,  1863-1882  65 


ASSETS 

Loans  and  discounts  -....-    $2,381,957.79 

United  States  bonds  (par  value)  -        -        -        -              767,050.00 

Building,  fixtures,  and  furniture  .        .        .        -         312,885.05 
Cash  resources: 

Due  from  banks     -        -  -        -   $312,135.74 

Checks  for  clearing  house  -          232,069.57 

Cash  on  hand         .        .  .        -     555,872.53      1,100,077.84 


$4,561,970.68 


LIABILITIES 

Capital  stock  paid  in $1,000,000.00 

Surplus  fund 200,000.00 

Other  undivided  profits 72,712.88 

Circulation  notes  from  Comptroller       -        .        -  597,270.00 

Deposits 2,691,987.80 

$4,561,970.68 

At  the  meeting  of  January  15,  1870,  Edward  F. 
Lawrence  and  Lyman  J,  Gage  were  elected  directors 
to  succeed  Messrs.  Hall  and  Webster.  Henry  H. 
Porter  was  placed  on  the  finance  committee,  and 
Messrs.  Nickerson,  Porter,  and  Gage  were  appointed 
to  remodel  the  by-laws  of  the  association.  Owing  to 
the  adoption  of  a  policy  of  greater  conservatism,  the 
loans  and  discounts,  as  well  as  deposits,  at  this  date 
show  a  distinct  shrinkage;  they  were,  respectively, 
$1,862,262.91  and  $1,793,167.56. 

On  January  10,  1871,  the  stockholders  in  annual 
session  adopted  several  amendments  to  the  articles  of 
association,  the  principal  provision  being  for  such 
increase  of  the  capital  as  might  be  voted  by  a  two- 
thirds  majority  of  the  board  of  directors  from  time  to 
time  until  in  the  total  it  should  aggregate  $3,000,000. 


66     The  First  National  Bank  of  Chicago 

The  number  of  directors  was  also  fixed  at  not  less  than 
five  nor  more  than  thirteen.  All  the  retiring  mem- 
bers, with  the  exception  of  Daniel  Thompson,  were 
re-elected;  in  his  stead  Benjamin  F.  Allen  was  chosen. 
The  same  officers  as  heretofore  were  again  named. 
Subsequently,  at  a  meeting  of  the  board,  on  February 
6th,  a  new  series  of  by-laws  was  voted. 

The  great  fire  swept  over  the  bank  structure, 
although  the  walls  were  left  standing,  and  a  portion 
of  the  interior  was  unharmed.  For  temporary  pur- 
poses quarters  were  found,*  but  on  January  i,  1872, 
business  was  again  transacted  in  the  old  edifice,  which 
at  that  time  had  been  thoroughly  restored.  The  safes 
and  vaults  had  withstood  the  heat  of  the  fiery  furnace; 
not  a  security,  note,  or  paper  of  any  value  was 
destroyed,  and  the  books  were  intact.  The  special 
committee  appointed  by  the  directors  to  ascertain  the 
total  loss  sustained,  as  the  effect  of  this  memorable 
calamity,  reported  that  it  did  not  exceed  $250,000, 
of  which  $100,000  represented  the  damage  to  the 
building. 

During  1872  only  one  change  occurred  in  the  direc- 
torate, Nelson  Morris  being  elected  to  succeed 
Frederick  Crumbaugh.      Charles  Hitchcock  was  also 

*  First  in  the  old  Burlington  Warehouse,  at  the  corner  of 
State  and  Sixteenth  streets,  then  in  a  building  on  Wabash  avenue, 
between  Congress  and  Twelfth,  and  afterwards  in  a  frame  struc- 
ture on  the  north  side  of  Washington  street  between  State 
and  Dearborn,  some  one  hundred  feet  east  of  the  latter  thor- 
oughfare, or  to  be  more  exact,  on  the  site  of  the  old  Crosby  Opera 
House. 


RUINS  OF  THE   FIRST  NATIONAL  BANK   BUILDING 
after  the  Great  Fire. 


First  Organization,  1863-1882  67 

in  August  of  this  year  appointed  legal  counsel,  and 
the  City  Bank  of  London  was  in  June  designated 
as  foreign  correspondent.  On  December  25th  the 
sum  of  S  100,000  was  transferred  to  the  surplus  fund. 
The  financial  condition  of  the  bank  at  the  opening  of 
the  next  year,  which  was  to  be  remarkable  as  one  of 
depression  and  panic,  was  excellent.  The  statement 
made  at  the  close  of  1872  showed: 

ASSETS 

Loans  and  discounts $2,493,063.06 

United  States  bonds  (par  value)     -        -        -.        -  675,800.00 

Building,  furniture,  and  fixtures        ...        -  264,361.38 

Cash  resources: 

Due    from    banks    (Eastern    ex- 
change) -        -        .        .        §549,058.04 

Cash  on  hand        ....      921,152.55       1,470,210.59 

$4,903,435.03 

LIABILITIES 

Capital  stock  paid  in         ....  §1,000,000.00 

Surplus  fund           -----  300,000.00 

Other  undivided  profits       -        .        -        -  204,959.15 

Circulation  notes  from  Comptroller  $602,300 

Less  amount  on  hand      -        -        .  14,315         587,985.00 

Dividend 250.00 

Deposits       .---.-.  2,810,240.88 

§4,903,435.03 

As  showing  the  relative  position  of  Chicago  banks 
at  this  time  as  compared  with  those  in  other  cities  the 
next  table  may  not  be  without  interest : 


68     The 

Fir: 

ST  National  Bank  of 

Chicago 

il 
Z  to 

Capital 
and 

Individual 

Deposits 
of  Other 

31 

Surplus. 

Deposits. 

Banks. 

rt  m  a 
111 

^■B 

<2qS 

New  York 

50 

$92,163,877 

$188,526,991 

$75,433,200 

286 

Boston 

49 

60,340,325 

40,841,919 

16,274,348 

94 

Philadelphia 

29 

23.579.075 

41,039,384 

7.361.413 

205 

Chicago 

19 

10,681,885 

19,469,985 

8,071,967 

259 

Cincinnati 

5 

4,790,000 

5.419.394 

3,232,086 

180 

St.  Louis 

8 

7,771,062 

3,018,147 

2,204,367 

66 

On  February  28,  1873,  the  First  National  Bank  of 
Chicago  had:  Loans  and  discounts,  $2,560,897.42 ; 
deposits,  $3,477,880.12.  The  worst  days  of  depres- 
sion did  not  come  until  autumn.  Through  their  trials 
and  tribulations  the  institution  passed  unharmed  and 
intact.  Not  for  a  moment  were  its  doors  closed,  or 
the  slightest  hesitation  shown  in  meeting  the  demands 
of  its  depositors.  While  others  were  suspending, 
or  wavering  between  doubt  and  fear,  it  manfully 
and  promptly  fulfilled  every  obligation.  After  the 
crisis  had  been  successfully  weathered,  its  prestige 
was  so  greatly  enhanced  that  it  was  at  once  recog- 
nized as  the  foremost  bank  in  Chicago  and  the  West. 
To  the  fidelity  and  courage  of  the  cashier,  Lyman 
J.  Gage,  the  happy  issue  from  these  painful  ordeals 
was  chiefly  due,  as  is  most  fittingly  testified  in  appro- 
priate and  eulogistic  language  upon  the  record  book 
of  the  association.  With  just  pride  he,  in  his  official 
capacity,  made  the  following  report,  as  specially  re- 
quired  by   the   Comptroller  of    the   Currency.      This 


First  Organization,  1863-1882  69 

document,  memorable  in  the  history  of  the  corpora- 
tion, deserves  reproduction  here. 

Special  report  of  condition  at  close  of  business  October  13th 
and  November  ist,  made  to  the  Comptroller  of  the  Currency  No- 
vember 10,  1873: 

October  13th.  November  ist. 

Loans  (not  including  demand)       -  $1,772,435.02  $2,007,178.51 

Demand  loans     -        -        .        .  723,200.00  769,000.00 

United  States  bonds  on  hand          -  58,800,00  55,150.00 

Due  from  reserve  agents    -        -  306,923.15  265,309.99 

Due  from  other  banks  and  bankers  165,141.25  163,350.05 

Exchange  for  clearing  house          -  252,389.73  349,304.22 

National  bank  notes   -         -         -  80,000.00  100,000.00 

Fractional  currency        -        -        -  7,985.26  6,131.28 

Coin 81,147.92  56,286.48 

Legal  tender 900,000.00  865,000.00 

Capital $1,000,000.00  Si,ooo,ooo.oo 

Circulating  notes  outstanding     -  587,575.00  586,480.00 

Deposits  of  all  kinds       -        -        -  3,149,622.14  3,421,273.42 

Due  to  banks  and  bankers          -  1,054,402.38  1,198,598.75 

Questions.  Answers. 

Did  your  bank  suspend  currency  payments?  No. 
Did  your  bank  partially  suspend  currency 

payments?  No. 

On  what  day  did  the  bank  suspend?  Did  not  suspend. 

After  this  date  remarkably  few  changes  occurred  in 
the  membership  of  the  board  of  directors.  In  1874 
H.  M.  Wilmarth  succeeded  B.  F.  Allen.  In  1879 
Horace  M.  Singer  was  elected  in  place  of  Mancel  Tal- 
cott,  deceased.  Mr.  Talcott  had  died  in  May,  1878; 
as  "one  whose  long  and  devoted  services  were  always 
marked  by  the  high  qualities  of  personal  integrity,  and 
intelligent  appreciation  of  the  true  interests  of  the 
institution,"  his  loss  was  keenly  felt. 


70     The  First  National  Bank  of  Chicago 

On  December  26,  1873,  the  statement  of  the  bank 
showed  the  rapid  strides  which  were  being  taken. 

ASSETS 

Loans  and  discounts $3>o5 1,649.53 

United  States  bonds  (par  value)    -        -        -        -  737,388.66 

Real  estate,  furniture,  and  fixtures     -        -        -        -         264,361.38 
Cash  resources: 

Due    from    banks  (Eastern    ex- 
change)      $479,221.85 

Checks  for  clearing  house       -  282,552.16 

Cash  on  hand       .        .        -        .      1,038,927.92 

1,800,701.93 


$5,854,101.50 


LIABILITIES 


Capital  stock  paid  in $1,000,000.00 

Surplus  fund 500,000.00 

Other  undivided  profits 139,722.96 

Circulation  notes  from  Comptroller        -        -        -  574,030.00 

Dividend 40.00 

Deposits 3,640,308.54 

$5,854,101.50 

The  next  few  years  were  marked  by  steady  pro- 
gress. This  advance  cannot  be  better  shown  than  by 
a  brief  tabulated  statement  of  the  growth  of  deposits, 
loans  and  discounts,  capital  and  surplus  during  this 
period. 

Loans  and  Capital  and 

Deposits.  Discounts.  Surplus. 

Feb,  27, 1874  $4,214,958.48  $3,470,196.67  $1,500,000 

Mar.    1, 1875  5,769,946.78  4,349,568.71  1,600,000 

Mar.  10, 1876  5,111,531.06  4,279,049.91  1,700,000 

Jan.   20,1877  5,296,188.03  4,414,879.23  1,750,000 

Mar.  15, 1878  5,941,899.03  3.745.257-33  1,750,000 

Jan.     2,1879  6,832,921.56  4,488,334.71  1,750,000 

Feb.  21,1880  11,237,102.98  7,635,477.12  2,000,000 

Mar.  11,1881  13,397,281.65  8,619,956.45  2,000,000 

Mar.  11,1882  17,322,467.83  10,414,081,50  2,500,000 


First  Organization,  1863-1882  71 

A  notable  event  is  the  action  taken  on  December 
30,  1879,  in  reference  to  new  quarters.  At  a  meeting 
of  the  board  of  directors,  held  on  that  day,  Mr.  Porter 
called  attention  to  the  cramped  appearance  and  the 
existing  inconveniences  in  the  ofifice  arrangements,  and 
it  was  voted : 

Whereas,  the  increase  of  business  of  this  bank  imperatively 
demands  increase  of  room,  and  facilities  to  properly  accommodate 
it,  therefore. 

Resolved,  that  the  president  and  cashier  be  and  they  are 
hereby  appointed  a  committee  to  ascertain  and  report  upon  the 
feasibility  of  procuring  more,  whether  by  the  alteration  of  present 
building  and  purchasing  adjoining  lot,  or  by  the  sale  of  present 
building  and  the  purchase  of  new  lot. 

The  project  of  enlarging  the  structure  then  occu- 
pied by  the  institution  was  soon  found  impracticable; 
consideration  was  therefore  given  to  the  selection  of 
another  site.  During  the  summer  of  1880  the  decision 
was  gradually  reached  that  the  northwest  corner  of 
Dearborn  and  Monroe  streets,  where  before  the  fire 
the  post-ofifice  had  stood,  would  be  an  admirable  loca- 
tion. This  lot  was  school  property.  In  the  original 
proposition  made  to  the  Board  of  Education  it  was 
contemplated  to  take  a  lease  for  fifty  years  with  an 
additional  option  of  twenty  years,  and  to  erect  a  fire- 
proof building,  of  which  the  upper  floor  should  be 
rented  to  the  board  and  to  the  public  library.  It  was 
also  necessary  to  buy  out  the  leasehold  interest  held 
by  J.  H.  Haverly  in  the  old  post-office  building, 
then  known  as  the  Haverly  Theatre.  Arrangements 
had  been  completed  in  accordance  with  these  plans. 


72      The  First  National  Bank  of  Chicago 

when  in  June,  1881,  a  change  in  policy,  due  to  cer- 
tain provisions  of  the  National  Banking  Act,  was 
adopted.  It  was  determined  to  organize,  as  a  sub- 
sidiary corporation,  the  "National  Safe  Deposit 
Company,"  with  a  capital  of  $300,000,  divided  into 
three  thousand  shares  of  $100  each.  The  bank  in  its 
corporate  capacity  subscribed  for  $291,000  of  this 
stock,  the  remainder  being  taken  by  its  directors  as 
individuals.  The  new  company  was  substituted  as 
lessee  in  the  pending  transaction.  The  annual  rental 
for  the  lot  during  the  first  five  years  was  fixed  at  six 
per  cent  on  a  valuation  of  $345,000,  and  it  was  stipu- 
lated that  the  edifice  to  be  constructed  should  cost 
not  less  than  $300,000.  This  offer  was  accepted  and 
the  agreement,  as  executed,  began  to  run  from  July  i, 
1 88 1.  Since  then  several  reappraisements  of  the 
ground  have  been  made.  The  bank  itself  in  time 
took  from  the  National  Safe  Deposit  Company  a 
lease  of  the  main  floor  of  the  block  then  immediately 
erected.  The  new  quarters  were  occupied  on  Novem- 
ber 27,  1882. 

Again  to  quote  from  Industrial  Chicago: 

"The  First  National  Bank  building  is  a  six-story  and  base- 
ment structure,  Romanesque  in  style,  with  basement  and  first 
story  in  vermiculated  stone  and  the  upper  stories  in  pressed  brick; 
a  Roman-Doric  portico  shows  two  polished  granite  columns  on 
either  side  corresponding  with  pilasters  carrying  a  heavy  entabla- 
ture and  balustrade.  In  the  central  and  corner  pavilions  the 
horizontal  style  of  the  recessed  sections  merges  into  the  vertical. 
The  portico  extends  to  the  level  of  the  second  principal  floor,  and 
piers  in  the  corner  project,  corresponding  with  it,  thus  carrying 
the  high  basement  and  first  floor  in  one  storj.    The  second  ana 


THE  THIRD   BUILDING   OF  THE   FIRST  NATIONAL   BANK 
Northwest  Corner  Dearborn  and  Monroe  Streets. 


First  Organization,  1863-1882  73 

third  stories  are  also  carried  in  one  by  pilasters,  and  the  fourth, 
fifth,  and  sixth  are  compressed  into  one  story  for  architectural 
effect;  the  two  windows  of  the  sixth  story  in  each  corner  pavilion 
and  three  in  the  central  pavilion  showing  the  round  arch  hnishing 
a  section.  The  cornice  is  becoming,  and  the  parapets  above  it, 
in  the  pavilions,  render  the  sky-line  perfect.  This  house  occupies 
the  site  of  the  'Honest  Building'  which  was  restored  after  the 
fire  and  used  up  to  1882,  when  it  was  torn  down.  The  bank  hall, 
occupying  the  first  floor,  is  lighted  by  a  great  court.  While  the 
mural  decorations  and  furniture  are  of  the  highest  class,  they  are 
lost  in  the  business  air  which  pervades  this  hall,  so  that  to  pick 
them  out  one  must  visit  the  bank  with  that  sole  object."* 

These  same  premises  are  still  occupied  by  the  insti- 
tution, although  from  time  to  time  the  space  used  by 
it  has  been  enlarged.  The  latest  modification  of 
interior  arrangements  was  the  removal,  in  1 901,  of  the 
foreign  and  bond  departments  to  the  basement,  where 
they  now  enjoy  commodious  quarters. 

On  November  7,  1881,  resolutions  were  passed,  in 
accordance  with  which  the  capital  stock  was  increased 
to  the  sum  of  $2,000,000,  the  additional  amount 
required  being  rapidly  subscribed.  Thus  the  bank, 
while  approaching  the  original  term  of  its  existence, 
was  daily  growing  and  developing  in  every  direction. 
Nor  were  those  charged  with  the  conservation  of  its 
interests  indifferent  or  ungrateful  to  the  men  upon 
whom  the  routine  labors  fell.  The  corporation  early 
manifested  its  appreciation  of  faithful  and  arduous 
service.  A  pleasing  custom,  soon  observed  by  the 
board  of  directors,  was  that  of  voting,  upon  the  recur- 
rence of  every  new  year,  substantial  gifts  to  the  officers 
and  employees  who  were  toiling  for  success  and  greater 

♦Industrial  Chicago,  I.,  175. 


74     The  First  National  Bank  of  Chicago 

achievement.  This  practice  gradually  arose,  until  at 
the  close  of  1881  perhaps  the  largest  sum  ever  thus 
bestowed  was  appropriated;  $20,000  was  then  distrib- 
uted. Merit  and  ability  were  likewise  always  rewarded 
by  increase  of  salary  and  corresponding  promotion. 
Several  instances  might  be  cited  of  men,  who  from 
the  ranks,  have  risen  to  lucrative  and  controlling 
positions. 

With  the  advent  of  1882  the  association  was  neces- 
sarily obliged  to  anticipate  the  early  discontinuance  of 
its  activities  or  at  least  its  technical  reorganization. 
The  hope  had  been  cherished  that  Congress  would 
pass  a  measure  enabling  national  banks  to  prolong  the 
term  of  their  existence,  or  renew  their  charters  upon 
conditions  which  might  permit  them  to  retain  their 
corporate  identity.  But  such  action  was  not  taken. 
The  bill  for  that  purpose  pending  in  the  spring  of  1882 
was  long  and  tediously  debated.  The  first  of  May, 
when  the  privileges  of  "The  First  National  Bank  of 
Chicago,  Number  8,"  would  expire,  was  not  many 
weeks  distant.  After  serious  consideration,  it  was 
therefore  determined  to  be  best  that  the  institution 
should  go  into  voluntary  liquidation.  Its  property 
was  offered  for  sale;  it  was  resolved  that  its  doors 
should  be  closed  on  Saturday,  April  29,  1882,  and  all 
other  requisite  formalities  were  executed.  Its  assets, 
of  course,  were  without  delay  transferred  to  its  legal 
successor,  thenceforth  known  as  "The  First  National 
Bank  of  Chicago,  Number   2670."      Finally  the  books 


First  Organization,  1863-1882  75 

were  balanced  and  a  complete  settlement  of  affairs  was 
made,  the  stockholders,  in  conclusion,  receiving 
$294.12  for  every  share  they  held. 

Such  is  the  record  of  prosperity  enjoyed  by  this 
establishment  during  the  period  of  its  first  organiza- 
tion, extending  from  1863  to  1882;  of  their  success, 
the  men  who  attained  it  may  well  be  proud.  For 
nearly  twenty  years  they  had  wisely  and  diligently 
worked  in  harmony;  to  another  term  of  equal  length 
they  were  eagerly  looking  forward,  for  the  second 
corporation,  while  then  by  law  newly  created,  was  in 
the  personnel  of  its  membership  still  one  and  the  same. 
The  story  of  achievement  is  therefore  only  half  told. 


CHAPTER  VI 
THE  FIRST  NATIONAL  BANK  OF   CHICAGO 

Second   Organization,   i 882-1 902 
No.  2670 

The  new  organization  was  completed  on  April  24, 
1882,  when  the  subscribers  to  the  stock  met,  adopted 
a  series  of  by-laws,  and  elected  a  board  of  directors. 
The  incorporators,  together  with  the  number  of  shares 
respectively  held  by  them,  were: 


Shares. 

Samuel  M.  Nickerson    -  7,100 

Lyman  J.  Gage           -  2,334 

George  N.  Culver  -        -  100 

Matilda     P.     Nickerson  200 

Thos.  P.  Smith  -        -  310 

George  W.  Higgins       -  350 

Henry  E.  Sawyer       -  200 

Moses  W.  Gray      -        -  120 

Roland     C.     Nickerson  20 

Henry  H.  Porter        -  300 

Edward  F.  Lawrence    -  220 

Nathaniel   K.  Fairbank  300 

Mary  H.  Talcott        -  600 

Horace  M.  Singer         -  600 

William     W.     Kimball  28 

Samuel  W.  Allerton     -  1,864 

Jane  A,  Brooks       -        -  100 


Shares. 

Franklin  D.  Gray  -  -       450 

Edward  C.  Sawyer     -  60 

Charles  H.  Curtis   -  -        100 

Isaac  Eldridge  -        -  40 

Magdelina  P.  Sample  -         50 

George  T.  Smith        -  300 

Richard  J.  Street    -  -         12 

Harry  C.  Sawyer        -  10 

Nelson  Morris        -  -     1,000 

Henry  R.  Symonds     -  2,250 

Henry  M.  Wilmarth  -       400 

Theodore  A.  Shaw     -  100 

Stephen  B.  Roath  -  -        100 

Sarah  Morris      -        -  172 

John  M.Williams  -  -          50 

William  J.  Wilson      -  100 

George  P.  Sanford  -         60 


The  total  capital  was  thus  $2,000,000,  divided  into 
twenty  thousand  shares  of  $100  each.  The  articles 
of  association  provided  that  the  charter  should  run  for 
twenty  years,  or  until  April   25,   1902;   that  the  capi- 

76 


LYMAN  J.  GAGE. 


Second  Organization,  1882-1902  77 

tal  might  be  augmented,  upon  certain  conditions,  to 
a  sum  not  to  exceed  $10,000,000,  and  that  the  num- 
ber of  directors  should  be  not  less  than  five  nor  more 
than  fifteen.  The  first  board  chosen  consisted  of 
Samuel  M.  Nickerson,  Edward  F.  Lawrence,  Nelson 
Morris,  Franklin  D.  Gray,  Henry  H.  Porter,  Lyman 
J.  Gage,  Samuel  W.  Allerton,  Henry  M.  Wilmarth, 
Horace  M.  Singer,  and  Henry  R.  Symonds,  all  of 
whom,  but  the  last  named  and  additional  member, 
had  served  under  the  old  regime.  When  the  directors 
assembled  they  elected  Samuel  M.  Nickerson  presi- 
dent, and  Franklin  D.  Gray  vice-president.  Lyman 
J.  Gage  was  appointed  cashier,  and  Henry  R.  Symonds 
assistant  cashier.  From  this  list  of  names  it  is  at  once 
apparent  that  the  present  corporation  was  in  every 
respect  not  only  the  continuation  but  the  counterpart 
of  its  predecessor.  Theoretically  and  legally  they 
were  different  entities,  but  practically  they  were  one 
and  the  same  institution.  On  May  i,  1882,  John  J. 
Knox,  the  Comptroller  of  the  Currency,  authorized 
the  commencement  of  business  under  charter  known 
as  Number  2670,  and  that  day  the  bank  reopened  its 
doors,  in  the  same  well-known  quarters,  the  entire 
assets  having  been  already  transferred  by  purchase 
from  the  defunct  to  the  new  organization. 

Aside  from  the  radical  change  which  had  thus 
occurred,  this  year  was  also  in  several  respects 
notable.  Within  one  week  after  the  events  just 
related,  the  decision   was  taken,  on  May  6,  1882,  to 


78      The  First  National  Bank  of  Chicago 

increase  the  capital  stock  to  $3,000,000,  a  resolution 
which  was  speedily  effected.  The  sale  of  the  old 
building  on  the  southwest  corner  of  State  and  Wash- 
ington streets,  for  the  sum  of  $230,060,  was  concluded 
on  June  5th.  On  June  20th  the  policy  of  declaring 
quarterly  dividends  was  adopted,  the  first  of  two  per 
cent  being  ordered  payable  at  the  end  of  that  month ; 
on  the  same  day  Henry  M.  Kingman  was  appointed 
assistant  cashier.  One  of  the  most  important  inci- 
dents in  the  history  of  the  association  happened  Sep- 
tember 4,  1882.  Upon  this  occasion  Mr.  Franklin  D. 
Gray  resigned  as  vice-president,  a  position  which  he 
had  honorably  and  successfully  held  since  1867. 
Lyman  J.  Gage,  formerly  cashier,  was  promoted  to 
be  his  successor.  However  arduous  the  duties  of  Mr. 
Gage  had  heretofore  proven,  they  were  thenceforth  to  be 
multiplied  many  fold;  for  the  principal  executive  man- 
agement was  now  confided  to  his  care.  Henry  R.  Sy- 
monds  was  chosen  cashier,  Henry  M.  Kingman  assistant 
cashier,  and  Richard  J.  Street  second  assistant  cashier. 
About  the  same  time  a  lease  was  negotiated  with 
the  National  Safe  Deposit  Company,  whereby  the 
bank  agreed  to  pay  for  the  space  occupied  by  it  in  the 
new  building,  then  completed,  the  sum  of  $18,000 
quarterly.  Possession  of  these  quarters  was  taken  on 
November  27th.  At  the  meeting  of  December  26th 
the  surplus  of  $100,000  was  doubled,  and  an  appro- 
priation of  $20,000  made  for  New  Year's  gifts  to 
worthy  and  meritorious  employees. 


Second  Organization,  1882— 1902  79 

At  the  annual  session  of  the  stockholders  on  Janu- 
ary 9,  1883,  the  board  of  directors  was  increased  by 
one  additional  member,  and  Augustus  A.  Carpenter 
was  chosen  to  fill  the  place.  In  the  spring  the  bank- 
ing rooms  were  first  lighted  with  electricity.  The 
generally  excellent  facilities  then  enjoyed  for  doing 
business  are  evidenced  by  the  national  bank  examiner, 
who  writes,  "The  ofifice  arrangements  are  far  superior 
to  those  of  any  other  institution  in  the  country." 
The  rule  of  requiring  all  employees  to  give  bond  was 
likewise  now  adopted.  An  additional  sum  of  $100,- 
000  was,  in  December,  carried  to  the  surplus  fund. 
Otherwise  the  year  was  uneventful  in  the  domestic 
affairs  of  the  corporation.  Attention  should  never- 
theless be  directed  to  the  fact  that  the  bank,  as  appears 
from  a  comparison  of  the  reports  submitted  to  the 
Comptroller  of  the  Currency,  then  attained  fourth 
rank  among  all  the  financial  establishments  of  the 
United  States. 

During  1884  not  anything  of  importance,  save  the 
further  increase  of  the  surplus  by  $100,000,  is  to  be 
noted.  The  statement  of  condition  made  in  Decem- 
ber, 1884,  showed : 

ASSETS 

Loans  and  discounts $10,068,871.00 

United  States  bonds  (par  value)         -        -        -  80,600.00 

Other  bonds  and  stocks  (market  value)     -        -  -           544,850.00 

Bank  building 500,000.00 

Cash  resources: 

Checks  for  clearing  house  )  o    o 

Cash  on  hand                        \            '        '  '        ^'^^3.339-oo 

$19,477,660.00 


8o     The  First  National  Bank  of  Chicago 

LIABILITIES 

Capital  stock  paid  in $3,000,000.00 

Surplus  fund 400,000.00 

Other  undivided  profits 350,607.00 

Deposits 15,727,053.00 

$19,477,660.00 
The  election  of  directors  for  1885  resulted  in  the 
return  of  the  former  members  of  the  board ;  but  the 
circle  was  soon  to  be  broken,  for  on  February  27th, 
Henry  M.  Wilmarth  was  called  to  his  last  rest.  For 
eleven  years  he  had  faithfully  conserved  the  welfare 
of  the  institution;  his  associates  in  its  management 
united  in  testifying  to  "the  high  integrity  and  clear 
appreciation  of  principle  which  marked  his  every  act 
and  word  in  this  relationship."  In  the  following 
autumn  Eugene  S.  Pike  was  chosen  to  fill  the  vacancy. 
At  this  time  the  official  records  first  mention  the 
arrangement  of  the  bank  for  serving  its  employees  their 
daily  lunch  in  the  building.  In  the  report  of  the 
national  examiner,  dated  September,  1885,  a  para- 
graph appears,  wherein  it  is  stated  that  a  kitchen,  a 
dining-room,  cooks,  and  stewards  being  provided, 
"the  entire  force  from  president  to  janitor  take  their 
midday  meal  on  the  premises."  This  scheme  is  still 
in  force.  Before  the  close  of  the  year  an  additional 
$100,000  was  carried  to  the  surplus  fund,  and  a  contri- 
bution of  $500  voted  to  the  memorial  window  to  be 
placed  in  the  Second  Universalist  Church  of  Chicago 
in  memory  of  the  late  Mancel  Talcott,  who  for  a 
decade  was  a  member  of  the  board  of  directors. 


Second  Organization,  1882-1902  81 

During  1886  the  bank  was  silently  but  steadily 
growing.  On  March  31st  it  joined  with  its  associate 
institutions  in  recommending  to  the  Comptroller  that 
Chicago  be  designated,  pursuant  to  the  act  of  Con- 
gress of  March  3,  1887,  as  a  central  reserve  city;  such 
action  was  taken  in  due  course.  Slightly  later  $250,- 
000  Avas  likewise  added  to  the  surplus,  a  similar 
amount  being  once  more  appropriated  for  the  same 
purpose  in  June,  1888. 

In  January,  1888,  Horace  M.  Singer  retired,  after 
nine  years'  membership  on  the  board  of  directors,  and 
Orville  Peckham,  long  employed  as  special  counsel, 
was  chosen  to  succeed  him.  Mr.  Peckham  served 
until  1890,  and  again  from  1891  to  1892.  During 
1889  cash  prizes,  aggregating  in  the  total  $600  annu- 
ally, were  also  inaugurated,  to  be  awarded  to  such 
clerks  as  should,  during  any  one  year,  prove  them- 
selves the  most  efficient,  exact  in  their  duties,  and  the 
most  apt  in  discovering  errors.  In  order  to  determine 
the  recipients,  a  complete  system  of  daily  marking 
was  instituted. 

Attention  may  here  also  be  especially  directed  to 
the  bond  and  foreign  departments,  the  business  of 
which  was  already  at  this  date  being  kept  entirely 
separate  and  distinct  from  the  other  divisions  of  the 
bank. 

On  December  11,  1889,  the  statement  of  condition 
showed : 


82     The  First  National  Bank  of  Chicago 


ASSETS 

Loans  and  discounts  - $15,803,617.00 

United  States  bonds  (par  value)    -        -        -        -  57,200.00 

Other  bonds  and  stocks  (market  value)    -        -        -  881,550.00 

Real  estate,  furniture,  and  fixtures        -        -        -  500,000.00 

Cash  resources: 

Checks  for  clearinghouse 

Cash  on  hand 


i  -        -        .     12,357,180.00 

$29,599,547.00 

LIABILITIES 

Capital  stock  paid  in     -----        -  $3,000,000.00 

Surplus  fund 1,500,000.00 

Other  undivided  profits 797,107.00 

Deposits 24,302,440.00 

$29,599,547.00 

The  very  last  day  of  the  year  $250,000  was  again 
voted  to  the  surplus  fund. 

At  the  annual  meeting  of  the  stockholders  on  Janu- 
ary 14,  1890,  Norman  B.  Ream  was  elected  a  director 
in  the  place  of  Mr.  Peckham;  otherwise  the  board 
remained  unchanged.  One  sign  of  rising  prosperity 
during  the  year  was  the  increase  in  the  rate  of  the 
quarterly  dividends  from  two  and  one-half  per  cent  to 
three  per  cent.  For  some  time  previously  they  had 
been  declared  at  the  former  figure. 

When  the  board  of  directors  met,  on  January  23, 
1 89 1,  to  organize,  the  following  letter  from  President 
Nickerson  was  presented  and  read : 

Chicago,  January  22,  1891. 
To   THE    Directors   of   the    First    National    Bank  of 

Chicago. 

Dear  Sirs—Beiore  proceeding  to  the  election  of  ofificers  for 
the  ensuing  year,  I  wish  to  state  that  should  you  decide  to  elect  me 
president,  it  must  be  with  the  understanding  and  notice  that  I 


Second  Organization,  1882— 1902  83 

shall  resign  the  office  whenever  Mr.  L.  J.  Gage  shall  be  relieved 
from  his  duties  as  president  of  the  World's  Fair,  and  can  devote 
all  his  time  to  the  affairs  of  this  bank;  and  when  that  time 
arrives  I  shall  take  pleasure  in  co-operating  with  you  in  elect- 
ing him  to  take  my  place,  if  you  then  decide  to  do  so.  It 
would  be  my  desire  to  continue  as  a  director  of  this  bank, 
and  co-operate  with  you  in  working  for  its  interests  and  success. 
It  is  not  my  intention  to  engage  in  any  other  business.  I  have 
arrived  at  a  time  of  life  when  I  feel  it  to  be  my  duty  to  delegate 
to  younger  heads  and  hands  the  responsibilities  that  are  involved 
in  the  position  I  have  held  in  this  bank  for  the  past  twenty-four 
years  as  president,  and  four  years  previously  as  vice-president, 
which  covers  the  entire  time  since  its  organization  in  1863.  The 
success  which  has  attended  this  bank  is  known  to  you  all.  For 
this  I  have  to  thank  the  directors  and  other  officers,  who,  by  their 
advice  and  labor,  have  made  this  success  possible.  Thanking  you 
for  your  many  evidences  of  confidence  and  good  will,  and  hoping 
that  the  future  success  of  the  bank  may,  under  your  direction,  be 
equal  to  or  better  than  the  past,  I  await  your  decision  as  indicated 
above. 

Yours  very  respectfully, 

(Signed)        Samuel  M.  Nickerson. 

Mr.  Nickerson  was  then  re-elected  to  the  presi- 
dency. On  June  30,  1891,  he  definitely  and  finally 
resigned.  The  note  then  addressed  to  his  associates, 
read: 

June  30,  1891. 
To  THE  Directors  of  the  First  National  Bank  of  Chicago. 
Gentlemeti — Referring  to  my  communication  of  January  22d 
last,  in  which  I  stated,  that  if  then  elected  president  of  this  bank, 
it  would  be  with  the  understanding  and  notice  that  I  should  have 
the  privilege  of  resigning  at  any  timie  during  the  ensuing  year; 
that  time  has  now  arrived,  and  I  hereby  tender  my  resignation,  and 
ask  its  acceptance,  to  take  effect  on  and  after  July  8th,  next. 
Yours  respectfully, 

(Signed)  Sam'l  M,  Nickerson. 

Whereupon  the  following  resolution  was  unani- 
mously adopted: 

Resolved,  that  the  thanks  of  the  stockholders  of  this  bank  are 
justly  due  to  Mr.  Samuel  M.  Nickerson  for  the  efficient  and  faith- 


84     The  First  National  Bank  of  Chicago 

ful   manner  in  which,  for  so  many  years,  he  has  discharged  the 
duties  of  president  of  this  institution. 

In  accepting  his  resignation  this  day  tendered,  this  board 
desires  to  place  on  record  its  high  appreciation  of  his  administra- 
tion. We  congratulate  ourselves,  however,  that  in  his  retirement 
from  the  office  of  president,  the  bank  will  still  retain  in  him  as  a 
director  the  wise  counsel  which  his  long  experience  has  so  well 
qualified  him  to  give. 

The  board  forthwith  proceeded  to  elect  Lyman 
J.  Gage  president.  The  other  officers  then  chosen 
were:  first  vice-president,  Henry  R.  Symonds;  second 
vice-president,  Henry  M.  Kingman;  cashier,  Richard 
J.  Street;  assistant  cashier.  Holmes  Hoge;  George 
D.  Boulton  was  appointed  manager  of  the  foreign 
exchange  and  bond  department.  The  resignation  of 
Henry  H.  Porter,  who  had  been  a  director  for  thirteen 
years,  was  likewise  accepted,  and  Orville  Peckham,  as 
heretofore  noted,  designated  temporarily  to  succeed 
him. 

Before  the  close  of  the  year  another  serious  loss 
was  suffered  in  the  death  of  the  second  vice-president, 
Henry  M.  Kingman,  who  for  a  long  period  and  in 
several  capacities  had  been  in  the  employ  of  the  bank. 
He  died  on  December  16,  1891.  At  the  meeting  of 
the  board,  on  the  29th  of  that  month,  appropriate 
resolutions  were  unanimously  adopted.  They  read  in 
part: 

Resolved,  that  this  board  deeply  feels  that  in  him  (Henry  M. 
Kingman)  the  bank  has  lost  a  long  tried  servant,  in  whom  the 
highest  integrity  was  united  with  a  clear  and  wide  comprehension 
of  his  work  and  responsibility  as  a  banker  and  bank  officer,  and 
admirable  industry  and  address  in  the  performance  of  that  work. 
As  citizens  in  the  same  community  in  which  he  lived,  we  lament 


JAMES  B.  FORGAN. 


Second  Organization,  i 882-1902  85 

his  death  as  a  loss  which  must  be  heavily  felt  in  the  wide  sphere 
of  usefulness  beyond  that  special  field  which  he  shared  with  us; 
and  individually  we  mourn  him  and  remember  him  with  affection 
as  a  true  and  helpful  friend. 

At  the  opening  of  1892  a  new  force  entered  the 
councils  of  the  institution.  James  B.  Forgan,  for- 
merly cashier  of  the  Northwestern  National  Bank  of 
Minneapolis,  Minnesota,  then  became  a  director,  and 
likewise  second  vice-president.  He  was  not,  how- 
ever, destined  long  to  remain  in  this  latter  position, 
for  the  way  was  soon  free  for  his  promotion.  The 
hand  of  time  was  being  heavily  laid  upon  those  who 
had  faithfully  and  arduously  served  the  interests  of 
the  corporation.  On  March  26,  1892,  the  bank  was 
called  to  mourn  Henry  R.  Symonds,  its  first  vice- 
president,  who  had  been  connected  with  it  for  nearly 
a  quarter  of  a  century.  The  directors,  at  the  sugges- 
tion of  Mr.  Allerton,  formally  testified  to  their  grief 
in  these  words: 

His  clear  comprehension  of  the  great  trust  imposed  upon 
him;  his  earnest  application  to  duty;  his  scrupulous  regard  for  the 
interests  he  represented;  his  prudence,  fortitude,  and  courage, 
made  his  official  life  most  effective  and  valuable. 

In  due  course  James  B.  Forgan  was  chosen 
first  vice-president  and  Roland  C.  Nickerson  was 
selected  to  succeed  Mr.  Symonds  on  the  board. 

On  October  25,  1892,  the  sum  of  $300,000  was 
subscribed  to  the  bonds  of  the  Columbian  Exposition, 
this  amount  being  the  proportionate  share  of  the  insti- 
tution  upon  the  basis  of  a  total  of  $2,300,000  to  be 


86      The  First  National  Bank  of  Chicago 

contributed  by  all  the  banks  of  the  city,  reckoned  at 
the  rate  of  five  per  cent  on  their  capital  and  surplus. 
At  the  close  of  the  year  $1,000,000  more  was  trans- 
ferred to  the  last-mentioned  fund. 

During  1893  Frank  E.  Brown  was  elected  second 
assistant  cashier.  Owing  to  the  large  accumulation 
of  old  books,  papers,  and  records,  a  special  storehouse 
for  them  was  erected  about  this  time. 

The  statement  of  condition  on  December  19,  1894, 
showed : 

ASSETS 

Loans  and  discounts $17,884,431 

United  States  bonds  (par  value)         -  .        .        .             778,636 

Other  bonds  and  stocks  (market  value)  -        -        -       1,605,378 

Real  estate,  furniture,  and  fixtures  -  -  -  -  675,000 
Cash  resources: 

Checks  for  clearing  house    )  -..^^r-,.. 

Cash  on  hand                        \          '  '        '        "^4^725^ 

$35,668,686 

LIABILITIES 

Capital  stock  paid  in 3,000,000 

Surplus  fund 3,000,000 

Other  undivided  profits       ------  316,135 

Deposits 29,352,551 

$35,668,686 

Throughout  1895  the  continued  depression  in  all 
lines  of  business  was  severely  felt.  For  a  number  of 
years  the  institution  had  phenomenally  prospered. 
Hence  it  was  without  any  grave  misgivings  that  the 
directors  faced  the  existing  financial  crisis.  Neverthe- 
less they  did   not  deceive  themselves  with  any  false 


Second  Organization,  1882-1902  87 

views  or  rosy-hued  dreams.  They  met  conditions  as 
they  found  them,  and  having  decided  to  rid  the  books 
of  all  doubtful  and  worthless  assets,  they  resolutely 
determined  to  take  the  stockholders  into  their  full 
confidence.  To  this  end,  after  due  deliberation,  it 
was,  on  August  2,  1895,  voted: 

Resolved,  that  the  officers  of  this  bank  be,  and  they  are  hereby 
directed  to  transfer  one  million  of  dollars  from  the  credit  of  sur- 
plus account  to  the  credit  of  profit  and  loss  account,  and  then  to 
charge  into  the  latter  account  such  items  of  real  estate  as  have 
been  taken  by  the  bank  in  settlement  of  claims;  also  such  items 
of  impaired  notes  and  bills  as  may  in  their  opinion  be  bad,  or  such 
proportion  thereof  as  they  may  deem  necessary  to  bring  the  same 
to  the  value  of  a  fair  cash  realization,  together  with  any  items  of 
stocks  or  bonds  of  doubtful  value;  and  they  are  hereby  directed 
to  make  a  full  report  of  all  such  items  as  charged  at  the  next 
regular  meeting  of  this  board. 

Resolved,  that  the  address  to  stockholders  indicative  of  this 
action,  here  submitted  by  the  president,  be  adopted  and  spread 
upon  the  records,  and  a  copy  thereof  be  sent  to  the  stockholders, 
to  wit: 

Chicago,  III.,  July  30,  1895. 

We  submit  herewith,  for  information  of  shareholders,  the 
following  statement  of  facts: 

This  bank  (present  organization)  began  business  M^y  i,  1882, 
practically  thirteen  years  ago.     Since  that  date  it  has  paid: 

To  shareholders  in  the  way  of  dividends       -        -  -     $4,245,000 

In  city,  county,  and  state  taxes  for  its  shareholders  -  792,000 

It  has  to  the  credit  of  surplus  account     -        -        -  -      3,000,000 

And  in  undivided  profits 215,000 

Total  net  earnings     ------  $8,252,000 

Average  earnings  per  year,  say  -  -  .  .  634,000 
Average  annual  percentage  of  profits  on  its  capital  of 

$3,000,000 21.13^ 

Average  dividends  paid  to  shareholders         -        -        -  10.88^ 

Average  dividends  for  last  six  years    -        -        -        -  12.00J6 

It  has  now  been  determined  by  the  directors  to  transfer 
$1,000,000  from  surplus  account  to  the  credit  of  profit  and  loss,  and 
then  charge  into  the  latter  account  items  of  impaired  bills,  stocks  of 


88      The  First  National  Bank  of  Chicago 

uncertain  value,  together  with  sundry  items  of  real  estate  falling 
into  the  bank's  hands  through  settlement  of  claims,  etc.,  so  that 
such  items  will  no  longer  be  reckoned  as  live  assets  of  the  bank, 
but  as  realized  upon,  will  again  appear  to  the  credit  of  profit  and 
loss  in  the  amount  of  their  actual  realization.  With  the  million 
dollars  put  aside  out  of  the  accumulated  profits  and  thus  applied, 
the  result  of  the  bank's  business  as  to  profits  would  appear  as 
follows: 

Profits  paid  in  dividends §4,245,000 

Profits  paid  in  taxes 792,000 

To  credit  of  surplus  account 2,000,000 

To  credit  of  profit  and  loss 215,000 

$7,252,000 

Average  net  profit  per  "annum 557,846 

Average  per  cent  of  earnings  on  capital  of  $3,000,000  18.595? 

The  officers  and  directors  are  moved  to  this  action  by  a  desire 
to  keep  the  assets  clear  of  doubtful  values.  With  the  usual  aver- 
age of  surplus  earnings  in  excess  of  dividends  made,  the  directors 
believe  that  such  items  of  doubtful  value  might  be  taken  care  of, 
as  actual  loss  is  defined,  but  they  think  it  better  to  adopt  the 
bolder,  broader  policy  herein  indicated.  The  growing  burden  of 
taxation  is  severe  enough  if  levied  only  against  absolute  value. 
The  reduction  of  surplus  should  save  one-sixth  of  the  local  taxes, 
the  full  amount  of  which  last  year  was  $90,250. 

We  have  been  passing  through  a  period  of  shrinking  values  and 
commercial  depression,  unparalleled  in  twenty  years.  Whether 
this  period  is  fully  past  cannot  yet  be  determined  with  certainty. 
Until  so  determined  it  will  be  our  policy  to  restrict  operations  and 
to  carry  large  cash  reserves  against  all  contingencies.  Net  profits 
may  be  somewhat  less  than  could  be  desired,  but  we  see  no  reason 
why  our  established  rate  of  dividend,  three  per  cent,  quarterly, 
cannot  be  continued,  with  a  growing  balance  to  the  credit  of  profit 
and  loss  account  at  each  quarterly  period. 

This  action  placed  the  institution  on  a  thoroughly 
sound  basis.  There  was  no  undue  inflation.  Every 
figure  was  warranted  by  the  facts,  and  the  road  was 
again  clear  for  further  unimpeded  advancement. 
Toward  the  close  of  this  same  year  (1895)  an  arrange- 
ment was  perfected  with  the  other  banks  in  the  clear- 


Second  Organization,  i 882-1902  89 

ing  house  approving  the  use  of  clearing-house  certifi- 
cates, in  case  of  need,  but  none  were  issued. 

Upon  the  election  of  Mr.  McKinley  in  1896,  it  was 
at  once  suggested  that  Mr.  Gage  should  enter  the  new 
cabinet  as  the  recipient  of  the  treasury  portfolio.  In 
due  time  the  offer  was  made  and  accepted.  The 
assumption  of  this  post  naturally  necessitated  the 
severance  of  his  relations  with  the  bank.  At  a  meet- 
ing of  the  board  of  directors,  held  on  February  11, 
1897,  the  following  communication  was  read: 

February  i,  1897. 
To  THE  Board  of  Directors  of  the  First  National  Bank 
OF  Chicago. 

In  view  of  the  public  duties  to  which  I  have  been  called,  I  now 
beg  to  hereby  tender  my  resignation  as  president  of  this  bank,  and 
as  a  director  thereof,  the  same  to  take  effect  at  your  pleasure  and 
convenience,  but  if  possible,  not  later  than  February  15th,  next. 
With  profound  appreciation  of  the  confidence  and  favors  shown 
me  by  the  stockholders,  directors,  and  associated  off.cers  of  this 
bank,  through  so  many  years,  I  remain. 

Very  truly  yours, 

(Signed)  Lyman  J,  Gage. 

It  was  thereupon  unanimously  voted : 

Whereas,  Lyman  J.  Gage,  president  of  this  bank  and  a  mem- 
ber of  this  board,  has  tendered  his  resignation  of  both  positions  in 
order  that  he  may  enter  the  Cabinet  of  President  McKinley: 

Therefore  resolved,  that,  deferring  to  his  wish,  which  we  are 
aware  signifies  no  selfish  preference,  but  springs  from  a  high 
sense  of  public  duty,  we  hereby  accept  these  resignations,  to  take 
effect  at  the  close  of  business  February  15th  next,  the  time  men- 
tioned by  him.  In  thus  yielding  to  ihe  request  of  Mr.  Gage  to 
sever  a  connection  that  has  existed  for  thirty  years,  and  submitting 
to  the  deprivation  of  his  counsel  and  official  direction  in  the  man- 
agement of  the  bank,  we  desire  to  bear  testimony  to  the  universal 
respect  and  affection  felt  for  him  by  all  his  associates,  as  well  as 
to  express  our  appreciation  of  the  tact,  ability,  and  probity  which 
he  has  so  faithfully  used  to  develop  the  strength  of  this  institution, 


90      The  First  National  Bank  of  Chicago 

and  which  with  his  many  other  rare  qualities  signalize  him  as  a 
citizen. 

As  he  leaves  us  to  become  Secretary  of  the  Treasury,  a  position 
for  which  his  peculiar  fitness  has  been  so  generally  recognized 
by  the  whole  country,  we  are  filled  with  the  hope  that  his  efforts 
in  the  broad  field  of  national  affairs  will  be  marked  by  the  same 
success  that  has  distinguished  his  career  as  a  banker. 

Resolved,  that  this  resolution  be  spread  upon  the  records  of 
the  bank,  and  that  a  copy  be  given  to  Mr.  Gage. 

With  the  retirement  of  Mr.  Gage  from  all  connec- 
tion with  the  bank,  it  was  expected  that  James  B. 
Forgan  would  succeed  him  as  the  head  of  the  institu- 
tion, but  owing  to  the  condition  of  this  gentleman's 
health  at  that  time,  and  his  enforced  absence  for  this 
reason  in  Europe,  the  immediate  fruition  of  these 
plans  was  deemed  impracticable.  A  temporary  ar- 
rangement was  therefore  reached  in  the  resumption  of 
the  presidency  by  Samuel  M.  Nickerson  and  the  con- 
tinuance of  James  B.  Forgan  as  vice-president,  with 
the  understanding  that  the  latter  would  be  elected  to 
the  presidency  as  soon  as  his  health  should  have  suffi- 
ciently improved.  George  D.  Boulton,  who  had  for 
many  years  been  serving  in  various  capacities,  was 
chosen  to  succeed  Mr.  Gage  on  the  board  of  directors, 
and  was  likewise  elected  second  vice-president. 

The  ensuing  years  were  marked  by  steady  growth 
along  all  lines;  figures  alone  accurately  show  what  was 
being  accomplished.  The  leading  items  as  taken  from 
the  books,  approximately  at  the  same  date  in  1896, 
1897,  1898,  and  1899,  were  as  follows: 


Second  Organization,  1882-1902  91 

Loans  and  Total 

Discounts.  Deposits.  Footings. 

Dec.  17,  1896  $15,522,394.71  $26,581,929.25  $31,829,434.48 

Dec.  15,  1897  20,093,591.04  37,622,903.87  42,869,080.03 

Dec.  I,  1898  21,626,167.98  41,136,043.13  46,389,319.95 

Dec.  2,  1899  24,824,263.73  43,630,069.54  49,135,925.21 

In  December,  1898,  the  bank  suffered  an  irrepa- 
rable loss  in  the  death  of  Edward  F.  Lawrence,  who, 
since  1870,  had  sat  ahnost  continuously  on  the  board 
of  directors,  and  had,  during  that  entire  period,  ren- 
dered distinguished  and  valuable  services.  As  a  per- 
manent record  to  the  love  and  esteem  in  which  he  was 
held,  his  associates  ordered  the  following  resolutions 
spread  upon  their  records: 

Whereas,  Edward  F.  Lawrence,  a  member  of  the  board  of 
directors  of  the  First  National  Bank  of  Chicago  for  nearly  twenty- 
nine  years,  has  passed  away,  and  rests  from  his  labors. 

Resolved,  that  we  now  express  our  deep  and  abiding  sense 
of  the  loss  which  has  befallen  this  institution  which  he  loved  and 
served,  and  ourselves  as  his  colleagues  and  friends.  His  service 
as  a  director  was  made  of  uncommon  value  by  the  excellence  of 
his  business  judgment,  and  the  large  measure  of  time  which  he 
devoted  to  the  bank  willingly  and  without  stint.  His  methods 
were  ever  straightforward  and  honorable,  bearing  the  mark  of  his 
fine  integrity  and  open  and  generous  character.  He  won  the  con- 
fidence of  all  who  knew  him  by  deserving  it.  He  was  a  public- 
spirited  and  useful  citizen,  giving  freely  of  his  time  and  means  to 
promote  the  best  interests  of  Chicago. 

Our  personal  loss  is  very  great.  His  nature  was  cheerful  and 
sunny,  winning  easily  the  friendship  of  others,  and  endearing  him- 
self to  them  by  his  warm  sympathy  and  ready  help.  We  shall 
miss  him  sadly,  this  good  and  kindly  man.  His  death  leaves  an 
ache  in  many  hearts  and  no  one  can  take  his  place  with  those 
who  loved  him. 

At  the  next  annual  meeting  of  the  stockholders 
George  T.  Smith  was  chosen  a  director  to  succeed  Mr. 
Lawrence. 


gi      The  First  National  Bank  of  Chicago 

In  the  spring  of  1899,  at  the  instance  of  Vice- 
President  J.  B.  Forgan,  an  important  step  in  accord 
with  modern  thought  and  policy  was  taken,  A  com- 
mittee was,  on  March  28th,  appointed  to  consider  the 
feasibility  of  establishing  a  system  of  pensions  for  old 
employees;  if  advisable,  it  was  directed  to  prepare 
and  submit  to  the  board  the  outlines  of  a  plan  to  effect 
this  purpose.  One  month  later  a  report  favorable  to 
the  project  was  presented,  and  the  adoption  of  a  set 
of  rules  was  recommended. 

On  October  31st  Mr.  Nickerson  verbally  stated  to 
the  board  of  directors  his  intention  again  to  retire  from 
the  presidency  at  the  beginning  of  the  next  year. 
Before  the  close  of  1899  another  veteran  of  promi- 
nence and  distinction  in  its  affairs  also  severed  his 
official  connection  with  the  institution.  At  the  meet- 
ing of  December  26th  the  following  communication 
from  Franklin  D.  Gray  was  read: 

Chicago,  III.,  Dec.  22,  1899. 
To  THE  President  and  Directors  of  the  First  National 
Bank. 

Gentlemen — With  sincere  feelings  of  regret,  I  deem  it  my 
duty  to  present  my  resignation  as  director  in  the  First  National 
Bank,  a  position  which  I  have  had  the  honor  of  holding  since  the 
bank  was  organized.    With  my  best  wishes  for  future  success. 

Very  truly  yours, 

(Signed)  F.  D.  Gray. 

It  was  then,  on  motion  of  Mr.  Allerton,  seconded 
by  Mr.  Carpenter: 

Resolved,  that  the  resignation  of  Franklin  D.  Gray,  Esquire, 
of  his  office  as  director  in  this  bank,  the  same  having  been  ten- 
dered, be  and  hereby  is  accepted. 


Second  Organization,  1H82-1902  93 

Resolved,  that  in  taking  this  action  we  desire  to  express  to 
Mr.  Gray  and  to  place  upon  our  records  our  sense  of  the  faithful- 
ness and  value  of  his  long  service,  and  to  thank  him  therefor  in 
the  name  of  the  bank.  He  has  been  a  director  in  the  present 
bank  from  the  date  of  its  organization,  prior  to  which  time  he  had 
served  the  original  First  National  Bank  of  Chicago  since  1866  in 
the  same  capacity,  making  a  practically  continuous  service  of 
some  thirty-three  years.  For  fifteen  years  he  was  also  vice-presi- 
dent of  the  original  bank.  This  long  and  honorable  connection  is 
now  severed  with  regret  on  both  sides  and  at  Mr.  Gray's  request; 
and  the  thanks  of  this  board  in  behalf  of  the  bank  are  hereby 
tendered  to  him. 

Upon  this  same  occasion,  and  in  view  of  his  im- 
pending retirement  from  the  active  control,  a  formal 
request  was  made  of  Mr.  Nickerson  that  he  sit  for  a 
life-sized  oil  portrait  to  be  hung  upon  the  walls  of  the 
president's  room.  In  due  course  this  picture  was 
painted  and  presented  byhim  as  a  gift  to  the  institution. 

On  January  9,  1900,  the  stockholders  elected  Otto 
Young  to  succeed  Franklin  D.  Gray,  resigned,  and 
Charles  H.  Conover  in  the  place  of  Roland  C.  Nicker- 
son, on  the  board  of  directors.  Thereupon  James  B. 
Forgan  was  chosen  president ;  George  D.  Boulton, 
vice-president;  Richard  J.  Street,  cashier;  Holmes 
Hoge,  Frank  E.  Brown,  and  Charles  N,  Gillett,  assist- 
ant cashiers ;  Emile  K.  Boisot,  manager  of  the  foreign 
exchange  and  bond  department;  John  E.  Gardin, 
assistant  manager  of  same  department ;  and  Frank 
O.  Wetmore,  auditor. 

A  momentous  change  was  now  on  the  eve  of  achieve- 
ment. Consolidation  of  capital  has  become  the  pre- 
vailing characteristic  of  the  age.  With  the  increase 
in  the  magnitude  of  industrial  corporations,  the  finan- 


94     The  First  National  Bank  of  Chicago 

cial  interests  of  the  country  must  keep  pace.  In  order 
to  afford  the  accommodation  at  times  required  by 
manufacturing  and  commercial  estabHshments  of  the 
first  rank,  the  department  of  credit  must  be  organized 
on  a  similar  scale.  The  appreciation  of  these  self- 
evident  truths  has  necessarily  demanded,  as  a  con- 
sequence, the  extension  of  the  facilities  of  banks, 
notwithstanding  the  fact  that  they  may  already  have 
been  in  the  enjoyment  of  large  resources  and  the 
best  possible  equipment.  At  the  monetary  centers 
of  the  land  the  need  of  the  day  is  most  apparent 
and  the  exigency  the  most  pressing.  Speedily  and 
efficaciously  to  satisfy  these  requirements  it  has  seemed 
most  expedient  in  such  instances  to  unite  the  energies 
of  two  or  more  pre-existing  institutions.  During  the 
last  few  years  this  solution  has  received  general  accept- 
ance; and  to  this  end  several  of  the  more  important 
establishments  in  the  leading  cities  have  amalgamated. 
In  accordance  with  this  tendency,  the  First  National 
Bank  and  the  Union  National  Bank,  both  veterans 
and  old-time  rivals  in  the  financial  world  of  Chicago, 
entered  into  negotiations  during  the  spring  of  1900, 
for  the  purpose  of  determining  upon  what  basis  they 
might  combine  their  forces. 

In  June,  1900,  President  Forgan,  together  with 
Directors  Smith  and  Young,  were  appointed  on  the 
part  of  the  former  to  meet  the  representatives  of  the 
other  bank  for  a  preliminary  discussion  of  the  propo- 
sition.     Pursuant  to  the  suggestion  subsequently  made 


Second  Organization,  i  882-1902  95 

by  this  committee,  a  call  was  issued,  on  June  19th,  to 
the  stockholders,  summoning  a  special  meeting  for 
July  24th,  to  consider  the  advisability  of  augmenting 
the  stock  of  the  First  National  Bank  to  $5,000,000, 
and  for  such  other  action  as  might  be  taken. 

In  the  mean  time  Augustus  A.  Carpenter,  a  mem- 
ber of  the  board  for  seventeen  years,  tendered  his 
resignation. 

On  the  day  appointed  the  stockholders  assembled, 
passed  the  requisite  resolutions  to  fix  the  capital  at 
$5,000,000;  and  enlarging  the  number  of  directors  to 
fifteen,  as  provided  in  the  by-laws,  elected  Messrs. 
John  H.  Barker,  William  L.  Brown,  D.  Mark  Cum- 
mings,  and  John  A.  Spoor,  all  formerly  on  the  direc- 
tory of  the  Union  National  Bank,  as  the  additional 
members.  When  the  board,  as  thus  increased  in  size, 
met  immediately  afterward,  its  first  action  was  the 
acceptance  of  the  resignation  of  Mr.  Carpenter; 
whereupon  the  following  resolutions  were  adopted: 

Resolved,  that  in  accepting  the  resignation  of  Mr.  A.  A. 
Carpenter,  we  desire  to  express  to  him  our  high  appreciation  of 
him  as  a  man  and  as  a  director  of  this  bank  during  his  long  term 
of  service,  and  to  thank  him  for  these  valuable  services.  He 
entered  the  directory  of  this  bank  on  January  g,  1883,  and  has 
served  thereon  continuously  up  to  the  present  time. 

We  deem  it  a  privilege  to  have  been  associated  with  him  in 
the  bank's  affairs,  and  the  severance  of  this  connection  with  us 
causes  deep  feelings  of  regret. 

Resolved,  that  the  above  resolution  be  placed  upon  the 
records  of  this  bank,  and  a  copy  thereof  transmitted  to  Mr. 
Carpenter. 

David  R.  Forgan,  lately  president  of  the  Union 
National  Bank,  was  then  elected  to  fill  the  vacancy, 


g6      The  First  National  Bank  of  Chicago 

and  further  chosen  senior  vice-president.  August 
Blum,  formerly  cashier  of  the  liquidating  bank,  was 
likewise  named  one  of  the  assistant  cashiers  to  rank 
second  in  point  of  seniority. 

With  these  proceedings  and  the  purchase  of  the 
assets  of  the  Union  National  Bank — the  new  stock  of 
the  First  National  Bank,  issued  for  such  purpose, 
being  subscribed  by  the  former  stockholders  of  the 
retiring  institution — the  amalgamation  was  effected. 
As  a  record  of  the  magnitude  of  the  transaction  and 
the  interests  involved,  it  seems  appropriate  to  show 
the  respective  conditions  of  the  two  banks  just  prior 
to  this  event.  The  statement  of  the  First  National 
Bank  on  June  29,  19OQ,  showed; 

ASSETS 

Loans $28,710,352 

United  States  bonds  (to  secure  circulation)      -        -  700,000 

United  States  bonds  (to  secure  U.  S.  deposits)     -        -  300,000 

United  States  bonds  on  hand 234,550 

Other  bonds  - 4,572,497 

Cash  and  exchange 21,757,276 

$56,274,675 
LIABILITIES 

Capital  and  surplus -  $5,000,000 

Undivided  profits 673,802 

Circulation 554i330 

Deposits 50,046,543 

$56,274,675 

The  Union  National  Bank,  on  the  same  date,  re- 
ported : 


Second  Organization,  i 882-1902  97 

ASSETS 

Loans             -        -  $10,140,410 

United  States  bonds  (to  secure  circulation)     -        -  700,000 

Other  bonds -        -  197,802 

Cash  and  exchange 6,017,871 

Real  estate  and  fixtures 314,805 

Premiums  on  United  States  bonds  -        -        -        -  3ii55o 

$17,402,438 

LIABILITIES 

Capital  and  surplus $2,370,000 

Undivided  profits 74.703 

Circulation -        -  350,000 

Deposits -        -  14,607,735 

$17,402,438 

After  the  consolidation  had  been  concluded,  on 
September  5,  1900,  the  statement  of  the  reorganized 
First  National  Bank  read: 

ASSETS 

Loans $39,219,804 

United  States  bonds  (to  secure  circulation)          -        -  1,000,000 

United  States  bonds  (to  secure  U.  S.  deposits)        -  300,000 

United  States  bonds  on  hand        -----  174,080 

Other  bonds 5. 530.291 

Cash  and  exchange 29,793,035 

$76,017,210 

LIABILITIES 

Capital  and  surplus $7,000,000 

Undivided  profits     -------  1,517,040 

Circulation 533.300 

Deposits 66.966,870 

$76,017,210 

At  the  annual  election  of  1901  the  first  complete 
board  of  directors  chosen  under  the  new  regime  was 
composed  of  Samuel  M.  Nickerson,  Samuel  W.  Aller- 


98     The  First  National  Bank  of  Chicago 

ton,  Nelson  Morris,  Eugene  S,  Pike,  Norman  B.  Ream, 
James  B.  Forgan,  George  D.  Boulton,  George  T. 
Smith,  Otto  Young,  Charles  H.  Conover,  John  H. 
Barker,  William  L.  Brown,  D.  Mark  Cummings,  John 
A.  Spoor,  and  David  R.  Forgan,  all  of  whom,  with 
one  exception,  still  continue  to  serve.  The  officers 
then  named  were:  president,  James  B.  Forgan;  vice- 
presidents,  David  R.  Forgan  and  George  D.  Boulton; 
cashier,  Richard  J.  Street;  assistant  cashiers.  Holmes 
Iloge,  August  Blum,  Frank  E.  Brown,  Charles  N. 
Gillett ;  manager  of  foreign  exchange  and  bond  de- 
partment, Emile  K.  Boisot;  assistant  manager,  John 
E.  Gardin;  auditor,  Frank  O.  Wetmore;  attorney,  Or- 
ville  Peckham ;  assistant  attorney,  James  D.  Woley. 

In  the  practical  working  of  the  bank  a  slight  change 
subsequently  occurred.  On  June  25,  1901,  the  for- 
eign exchange  and  bond  business  was  separated  into 
two  distinct  departments.  Of  the  former  John  E. 
Gardin  was  appointed  manager,  and  Max  May  assist- 
ant manager;  of  the  latter  Emile  K.  Boisot  remained 
in  charge  as  manager. 

Besides  the  various  details  of  internal  mechanism 
already  mentioned,  the  clerks'  savings  association 
should  not  be  forgotten ;  on  the  deposits  of  all 
employees  who  avail  themselves  of  its  privileges  a 
good  rate  of  interest  is  paid. 

As  indicative  of  the  magnitude  of  the  transactions 
of  the  bank  during  1901,  it  may  be  noted  that  in  that 
year  the  average  number  of  items  handled  each  day 


Second  Organization,  1882-1902  99 

was  64,402  ;  the  total  volume  of  business  aggregated 
$8,199,570,400;  the  out-of-town  items  collected  daily 
averaged  11,030;  the  clearings  during  the  entire  year 
were  $1,550,470,975.78,  equivalent  to  $5,000,000  per 
day.  The  total  annual  clearings  of  all  the  Chicago 
banks  were  $6,799,535,598.36,  showing  that  the  share 
of  the  First  National  Bank  therein  was  more  than  one- 
fifth,  the  exact  percentage  being  22.8%. 

The  tendency  toward  the  amalgamation  of  financial 
forces,  as  illustrated  in  the  consolidation  of  the  Union 
National  Bank  with  the  First  National  Bank,  was  still 
further  exemplified  in  the  spring  of  1902  by  the 
absorption  of  the  Metropolitan  National  Bank  in  the 
latter  institution.  The  management  of  the  Metropoli- 
tan— in  itself  of  large  proportions,  as  measured  by  the 
standards  of  quite  a  recent  day — deemed  it  for  the 
best  interests  of  those  identified  with  it  to  seek  associ- 
ation with  some  larger  establishment.  After  a  pros- 
perous existence  of  eighteen  years  it  was  considered 
advisable  to  combine  its  strength  with  that  of  its  well- 
known  competitor.  Thus  it  came  to  pass  that  after 
the  usual  negotiations  and  formalities  attendant  upon 
such  a  transaction  the  merger  was  accomplished.  In 
the  last  ofificially  published  statement,  dated  April  30, 
1902,  the  Metropolitan  National  Bank  showed  assets 
and  liabilities  as  follows: 


loo  The  First  National  Bank  of  Chicago 


RESOURCES 

Loans  and  discounts -  $14,727,611.61 

Overdrafts  secured  and  unsecured     -        -        -  4,758.83 

United  States  bonds  (at  par)             .        .        .        .  1,000,000.00 

Other  stocks  and  bonds 860,233.33 

Due  from  banks       -        -        -        -       $3,097,655.09 
Cash  and  checks  for  clearing      -  7,002,948.89 

10,100,603.98 

Due  from  United  States  Treasurer          -        -        -  42,000.00 


Total  -.---..  $26,735,207.75 

LIABILITIES 

Capital  stock  paid  in $2,000,000.00 

Surplus  fund  and  undivided  profits     -        -        -  1,626,287.98 

National  bank  notes  outstanding     -        -        -        -  834,150.00 

Dividends  unpaid 1,504.50 

Deposits 22,273,265.27 

Total $26,735,207.75 

The  First  National  Bank  at  the  same  date  reported : 

ASSETS 

Loans  and  discounts        ------      $45,192,862.53 

United  States  bonds  (par  value)  -        -        -  1,549,030.00 

Other  bonds  and  stocks  (market  value)  -        -  6,820,608.96 

Cash  resources  : 

Due   from  banks   (Eastern    ex- 
change)       ...        -        $14,067,980.08 
Checks  for  clearing  house  -        2,373,712.28 

Cash  on  hand      -        -        -  17,441,007.33 

Due  from  United  States  Treasurer     119,000.00 

34,001,699.69 

Total  -------         $87,564,201.18 


Second  Organization,  i 882-1902         loi 


LIABILITIES 

Capital  stock  paid  in $5,cxx),ooo.oo 

Surplus  fund 2,000,000.00 

Other  undivided  profits    - 1,768,892.94 

Discount  collected  but  not  earned       -        -        -  268,596,52 

Interest  accrued  on  interest  bearing  certificates    -  5,738.61 

United  States  bond  account        .        -        .        .  200,000.00 
Circulation     notes     received     from 

Comptroller  .        .        .        .         $993,500.00 

Less  amount  on  hand  -        -        -       202,810.00 

790,690.00 

Dividends  unpaid    -------  3,654.00 

Deposits 77,526,629.11 

Total $87,564,201.18 

After  the  consolidation,  which  was  finally  consum- 
mated on  May  31,  1901,  the  statement  of  the  First 
National  Bank,  so  far  as  regards  its  principal  items, 
comprised  approximately: 

Capital $8,000,000.00 

Surplus 6,000,000.00 

Loans            --......  60,000,000.00 

Deposits           - 100,000,000.00 

As  a  part  of  the  arrangement  for  the  union  of  the 
two  banks,  Elbridge  G.  Keith,  Adolphus  C.  Bartlett, 
and  William  J.  Watson,  formerly  directors  in  the 
Metropolitan  National  Bank,  were  chosen  to  represent 
the  interests  of  the  liquidating  institution  upon  the 
directorate  of  the  First  National  Bank.  Charles  H. 
Conover  at  the  same  time  retired  from  the  board  of 
the  latter.  All  the  former  ofificers  of  the  First  National 
Bank  were  retained ;  of  the  gentlemen  lately  associ- 
ated with  the  Metropolitan,  other  than  those  already 
mentioned,  Howard  H.  Hitchcock  was  elected  a  vice- 


I02  The  First  National  Bank  of  Chicago 

president,  to  rank  third  in  seniority,  and  Edward 
Dickinson  an  assistant  cashier,  likewise  to  be  third 
among  those  occupying  such  positions. 

With  the  amalgamation  of  these  two  institutions 
Chicago  for  the  first  time  came  into  the  possession  of 
a  bank  having  a  capital  of  $8,000,000,  showing  depos- 
its approximating  $100,000,000,  and  ranking  as  the 
second  largest  financial  establishment  in  the  United 
States.  The  First  National  Bank,  by  the  acquisition 
of  two  such  important  rivals  in  the  field  of  Chicago 
finance  as  the  Union  National  and  the  Metropolitan 
National,  still  retains  the  lead  over  all  competitors  in 
the  West,  and  is  still  ever  pressing  forward. 

In  a  slight  review  of  the  activity  of  a  single  impor- 
tant institution  it  is  not  practicable  to  obtain  any 
adequate  idea  of  the  scope  and  magnitude  of  its 
transactions  without  constantly  bearing  in  mind  the 
contemporaneous  history  of  the  nation.  Very  nearly 
forty  years  have  elapsed  since  the  passage  of  the 
National  Banking  Act,  and  the  organization  of  the 
First  National  Bank  of  Chicago  under  its  provis- 
ions. While  some  conception  of  the  steady  progress 
which  the  bank  itself  has  made  during  this  period — 
until  now  it  has  a  balance  sheet  aggregating  nearly 
$115,000,000 — will  be  formed,  it  may  still  not  be 
realized,  without  momentary  reflection,  what  a  force 
it  has  been  in  the  advancement  of  the  city  and  the 
enormous  tributary  territory.  While  it  has  certainly 
profited  by  the  phenomenal  growth  of  the  community, 


Second  Organization,  1882-1902         103 

it  has  on  the  other  hand  contributed  in  no  small  meas- 
ure to  the  extension  of  the  trade  and  the  development 
of  the  material  interests  of  those  whom  it  serves. 
Moreover,  only  consider  that  the  inhabitants  of  the 
entire  Mississippi  Valley,  those  dwelling  in  the  states 
west  of  the  Alleghanies  and  east  of  the  Rocky  Moun- 
tains, together  with  the  peoples  of  the  British  domain 
of  Canada  on  the  north,  and  the  sister  republic  of 
Mexico  on  the  south,  nay  barely  in  a  less  degree,  the 
vast  populations  of  Europe,  Asia,  and  Africa,  turn 
hither  as  a  center  from  which  to  draw  their  food  sup- 
plies. What  a  train  of  logical  conclusions  such  a 
thought  inspires! 

Chicago  is  the  chief  distributing  point  of  the  most 
essential  products  required  by  humanity;  the  slightest 
modification  in  the  demand  of  the  most  distant  land 
reacts  upon  its  welfare  and  fortune.  The  struggle  to 
attain  the  leadership  in  various  branches  of  trade  and 
industry  has  been  arduous,  but  not  by  any  means 
long,  for  has  not  the  city  grown  from  150,000  in  1863 
to  2,000,000  inhabitants  in  1902?  And  how  has  this 
proud  ascendancy  been  achieved?  As  the  result  of 
what  exertions  and  by  reason  of  what  causes  has  this 
metropolis  reached  its  supremacy?  What  are  the 
strong  foundations  upon  which  not  only  that  already 
accomplished  has  been  established,  but  on  which  by 
far  the  greater  superstructure  of  the  future  is  yet  to 
be  erected? 

To  those  familiar  with  the  intricate  mechanism 
behind  this  scene  of  activity  the  answer  is  not  difificult 


I04  The  First  National  Bank  of  Chicago 

to  formulate.  The  past  progress  and  present  position 
of  Chicago  are  in  a  great  measure  attributable  to  the 
sound  condition  of  its  principal  representatives  in  the 
world  of  finance.  Their  strength  has  ever  been  recog- 
nized and  unchallenged.  These  institutions  and  those 
associated  with  them  not  only  hold  the  front  rank  by 
virtue  of  the  volume  of  their  business,  but  have  also 
won  universal  recognition  as  safe  and  conservative, 
while  they  are  at  the  same  time  not  the  less  thoroughly 
equipped  and  fully  cognizant  of  the  needs  and  require- 
ments of  commercial  and  mercantile  enterprise. 

Without  any  desire  or  intention  to  eulogize  the 
First  National  Bank,  it  is  believed  that,  with  all  due 
propriety,  some  few  words  of  satisfaction  at  its  past 
career  can  be  uttered.  After  the  perusal  of  the  fore- 
going pages  scarcely  any  one  will  deny  that  by  reason 
of  the  excellent  management  which  it  has  uninter- 
ruptedly enjoyed,  the  high  financial  policy  which  it 
has  strenuously  advocated,  and  the  respect  and  esteem 
of  the  community  which  it  has  never  sacrificed,  this 
establishment  has  attained  a  reputation  well  merited 
by  its  record  and  unsurpassed  by  any  contemporary. 
Ever  jealous  of  the  consideration  which  it  has  received, 
striving  for  the  future,  and  always  anxious  to  conserve 
the  best  interests  of  those  who  in  any  way  are  con- 
nected with  it,  the  First  National  Bank  of  Chicago,  it 
is  modestly  assumed,  may  still  justly  anticipate  many 
long  years  of  public  service.  If  the  experience  of  the 
past  is  a  fair  criterion  upon  which  to  hazard  a  predic- 
tion, the  greater  fortune  is  yet  before  it. 


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art  was  prepared  prior  to  the  absorption  of  the  Metropolitan  National  Back;  since  that 
I  considerable  increase.  The  CapiUl,  Surplus  and  Undivided  Profits  on  July  ist,  1902, 
x>;  the  Deposits  approximated   $95,000,000;  the  Loans  and  Discounts,  $60,000,000. 


# 


THE  UNION  NATIONAL  BANK 


CHAPTER    VII 
THE    UNION    NATIONAL    BANK 

On  December  29,  1864,  the  Union  National  Bank 
of  Chicago  was  established;  on  January  11,  1865,  was 
authorized  by  the  Comptroller  of  the  Currency  to 
begin  business;  and  in  the  following  February  opened 
its  doors  in  the  building  situated  at  the  northwest 
corner  of  Lake  and  La  Salle  streets.  The  original 
capital  of  the  bank  was  $500,000.,  The  first  board  of 
directors  consisted  of  William  F.  Coolbaugh,  John  V. 
Farwell,  Wesley  Hunger,  Heman  G.  Powers,  Clinton 
Briggs,  Calvin  T.  Wheeler,  and  Daniel  Thompson. 
William  F.  Coolbaugh  was  at  once  chosen  president 
and  Charles  J.  Council  cashier.  One  year  later,  in 
January,  1866,  the  office  of  vice-president  was  insti- 
tuted, and  Calvin  T.  Wheeler  was  selected  to  perform 
its  duties. 

This  institution,  owing  its  existence  chiefly  to  the 
energy  of  William  F.  Coolbaugh,  was  until  the  day 
of  his  death,  November  14,  1877,  dominated  by  him. 
Born  on  July  i,  1821,  in  Pike  County,  Pennsylvania; 
with  an  education  restricted  to  the  opportunities  of 
a  village  school,  and  terminating  at  the  end  of  his 
twelfth  year,  he  was  a  typically  self-made  man. 
When  only  fifteen  he  started  on  his  career  as  porter 
in  a  Philadelphia  dry-goods  store,  but  soon  became  a 

107 


io8  The  First  National  Bank  of  Chicago 

clerk,  and  eventually  western  manager  for  his  em- 
ployer. In  1842  he  established  himself  as  a  merchant 
at  Burlington,  Iowa,  and  eight  years  later  formed 
there  a  partnership  for  banking  purposes  under  the 
name  of  Coolbaugh  &  Brooks.  While  still  a  member 
of  this  firm,  becoming  loan  agent  for  the  state  in  which 
he  resided,  he  issued  in  that  capacity  the  first  Iowa 
bonds.  In  1862  he  transferred  his  residence  to  Chi- 
cago, opening  in  this  city  the  banking  house  of  W.  F. 
Coolbaugh  &  Company,  located  at  154  Lake  Street, 
which,  as  events  developed,  proved  the  predecessor  of 
the  Union  National  Bank.  Mr.  Coolbaugh  quickly 
became  known  as  a  prominent  and  public-spirited 
man.  In  politics  he  was  an  ardent  Democrat;  served 
as  a  member  of  the  state  convention  of  1869,  and  in 
1876,  when  Samuel  J.  Tilden  was  believed  to  have 
been  elected  to  the  Presidency,  was  prominently  men- 
tioned as  the  probable  recipient  of  the  treasury 
portfolio.  His  financial  ability  and  judgment  were 
generally  recognized.  He  was  the  first  president  of 
the  Chicago  Clearing  House,  and  was  also,  upon  the 
formation  of  the  National  Bankers'  Association  for 
the  West  and  South,  chosen  to  a  similar  position  in 
that  organization.  In  1868  he  likewise  served  as 
treasurer  of  the  Chicago,  Rock  Island  and  Pacific 
Railway.  Under  the  direct  management  of  such  a 
spirit  the  Union  National  Bank  rapidly  gained 
strength,  and  for  many  years  aspired  to  be  the  lead- 
ing institution  of  its  type  in   Chicago  and  throughout 


The  Union  National  Bank  109 

the  West.  The  great  fire  of  1871  destroyed  its  origi- 
nal home,  but  after  a  brief  interval,  during  which 
business  was  temporarily  conducted  at  the  residence 
of  the  vice-president,  Calvin  T.  Wheeler,  on  Wabash 
avenue,  it  became  domiciled  in  the  old  Central  Union 
Block  on  the  northwest  corner  of  Market  and  Madison 
streets,  a  structure  just  then  erected  by  the  firm  of 
Coolbaugh,  Powers  &  Wheeler. 

For  the  present  purpose  only  the  principal  events 
in  the  subsequent  history  of  the  bank  need  here  be 
sketched.  In  July,  1872,  the  capital  of  the  associa- 
tion was  increased  to  $1,000,000 ;  on  March  29,  1878, 
owing  to  the  changes  incident  to  the  death  of  Mr. 
Coolbaugh,  it  was  reduced  to  $500,000;  upon  the 
renewal  of  the  charter,  in  1884,  was  once  more  fixed 
at  the  original  sum ;  subsequently,  in  the  same  year, 
increased  to  $1,600,000,  and  afterwards  gradually 
augmented  to  $2,000,000,  an  amount  first  reached  on 
July  30,  1886;  at  which  figure  it  remained  until  the 
retirement  of  the  bank  from  business  in  the  autumn 
of  1900, 

Several  changes  likewise  occurred  in  the  personnel 
of  the  officers.  In  November,  1871,  George  A.  Ives 
replaced  Charles  J.  Council  as  cashier,  the  latter  having 
resigned.  Upon  the  death  of  Mr.  Coolbaugh,  in  1877, 
Calvin  T.  Wheeler  was  elected  president  and  Charles 
A.  Munn  vice-president.  In  January,  1880,  W.  C.  D. 
Grannis  succeeded  Mr.  Munn,  and  at  the  same  time 
John   J.  P.  Odell  was   chosen   cashier  instead  of   Mr. 


no  The  First  National  Bank  of  Chicago 

Ives.  On  December  22,  1882,  Calvin  T.  Wheeler 
resigned  as  president,  shortly  thereafter  establishing 
the  Continental  National  Bank.  At  the  next  meeting 
of  the  directors,  in  January,  1883,  W.  C.  D.  Grannis 
was  advanced  to  the  presidency,  Hon.  Charles 
B.  Farwell  became  vice-president,  and  W.  O.  Hip- 
well  assistant  cashier.  In  January,  1885,  John  J.  P. 
Odell  was  promoted  to  be  vice-president  and  W.  C. 
Oakley  was  appointed  cashier.  One  year  later,  at  the 
beginning  of  1886,  Mr.  Grannis  retired  from  the  presi- 
dency, and,  severing  his  connection  with  the  bank, 
soon  afterward  founded  the  Atlas  National  Bank. 
Columbus  R.  Cummings  was  chosen  to  succeed  him. 
The  other  ofificers  remained  the  same  as  theretofore. 
During  the  next  four  years  not  any  change  of  impor- 
tance occurred;  the  only  event  of  note  being  the  cre- 
ation, in  1888,  of  an  additional  assistant  cashiership, 
which  August  Blum  was  selected  to  fill. 

A  number  of  modifications  in  officers  occurred  in 
1890.  Mr.  Cummings  was  succeeded  in  the  presi- 
dency by  John  J.  P.  Odell  and  David  Kelley  was 
chosen  vice-president.  The  following  year  there  was 
not  any  change;  but  in  1892  W.  C.  Oakley  retired, 
and  August  Blum  was  appointed  cashier.  In  1893  a 
second  assistant  cashier  was  named  in  the  person  of 
E.  J.  H.  McGuire,  who,  however,  scarcely  survived 
the  year.  At  the  beginning  of  1895  Richard  C.  Lake 
was  elected  second  vice-president.  Another  reorgani- 
zation of  the  official   representatives  of  the  bank  was 


The  Union  National  Bank  i  i  i 

effected  in  January,  i8g6.  James  W.  Ellsworth  was 
elected  president,  David  Kelley  vice-president,  and 
David  R.  Forgan,  second  vice-president.  One  year 
later  Mr.  Kelley  retired  from  the  vice-presidency,  in 
which  Mr.  Forgan  succeeded  him,  the  latter  assuming 
at  the  same  time  the  active  management  of  affairs. 
As  might  well  have  been  anticipated,  Mr.  Forgan  was, 
in  1898,  chosen  president.  The  other  officers  then 
elected  were:  vice-president,  John  McLaren;  cash- 
ier, August  Blum;  assistant  cashiers,  W.  O.  Hipwell 
and  Charles  M.  Walworth.  These  gentlemen  con- 
tinued in  office  until  September,  1900,  the  date  of 
consolidation  with  the  First  National  Bank. 

Two  events  of  importance  which  occurred  during 
the  later  days  of  the  institution  should  at  least  be 
noted.  In  1898,  under  the  inspiration  of  President 
Forgan,  the  Union  National  Bank  bought  out  the 
business  of  the  Hide  and  Leather  National  Bank,  of 
which  Mr.  John  McLaren  was  at  that  time  president. 
This  gentleman,  upon  the  consummation  of  the  sale, 
became  vice-president  in  the  purchasing  bank.  By 
the  transaction  the  Union  National  Bank  secured 
additional  deposits  amounting  to  $1,800,000.  One 
year  subsequently  the  business  of  the  Bank  of  Com- 
merce, with  deposits  representing  $1,000,000,  was 
likewise  absorbed. 

The  board  of  directors  of  the  Union  National  Bank, 
besides  the  names  of  those  already  mentioned,  as 
presidents    and    vice-presidents    of    the    institution, 


IJ2   The  First  National  Bank  of  Chicago 

included,  at  various  times  in  its  history,  David  Dows 
of  New  York,  William  D.  Howard,  J.  H.  Dwight, 
Nathan  Corwith,  E.  D.  Rand,  Asa  Dow,  N.  K.  Fair- 
bank,  A.  A.  Hunger,  Asa  P.  Kelley,  James  W.  Odell, 
Laurin  G.  Pratt,  John  E.  Williams,  D.  L.  Quirk,  J. 
W.  Grimes,  J.  H.  Barker,  O.  H.  Fuller,  D.  Mark 
CummingS;,  C.  F.  Grey,  W.  T.  Baker,  S.  E.  Barrett, 
H.  N.  May,  J.  A.  Spoor,  O.  C.  Barber,  H.  H.  Getty, 
David  B.  Dewey,  William  L.  Brown,  and  S.  K.  Mar- 
tin. As  indicative  of  the  financial  status  of  the  insti- 
tution, from  time  to  time,  it  may  not  be  without 
interest  to  cite  a  few  statistics  as  drawn  from  various 
reports  made  to  the  Comptroller  of  the  Currency. 
The  first  available  statement,  bearing  the  date  of 
April  I,  1865,  shows: 

Loans  and  discounts $873,000 

Cash  and  exchange 1,980,000 

Deposits 2,693,000 

Capital  stock 500,000 

On  January  22,  1870,  the  books  read: 

Loans  and  discounts $2,759,000 

Cash  and  exchange 1,653,000 

Deposits 3,586,000 

Capital  and  surplus 1,000,000 

Again,  on  December  12,  1879,  the  figures  were: 

Loans  and  discounts        - $3,809,000 

Cash  and  exchange     -.-.---  1,937,000 

Deposits 5,031,000 

Capital  and  surplus 700,000 

Ten  years  later,  on  December  11,  1889,  the  report 
then  made  included: 


The  Union  National  Bank  i  13 

Loans  and  discounts §5,819,514 

Cash  and  exchange -  3,013,600 

Deposits 7,208,700 

Capital  and  surplus 2,600,000 

The  last  statement  prior  to  amalgamation  with  the 
First  National  Bank  is  dated  June  29,  1900.  The 
items  are: 

Loans  and  discounts $10,140,410 

Cash  and  exchange    -        - 6,017,871 

Deposits 14,607,735 

Capital  and  surplus            - 2,370,000 

The  total  of  the  balance  sheet  aggregated  $17,402,- 
438.  It  is  a  noticeable  feature  that  in  every  respect 
the  figures  on  the  day  of  retirement  from  business  in 
September,  1900,  were  the  largest  in  the  history  of 
the  institution. 

The  Union  National  Bank,  in  the  course  of  its 
career,  experienced  two  removals  other  than  those 
already  mentioned.  In  1873  its  offices  were  trans- 
ferred to  the  Union  Building  on  the  southwest  corner 
of  Washington  and  La  Salle  streets,  and  again,  in 
April,  1886,  upon  the  retirement  of  Mr.  Grannis  from 
the  presidency  and  the  organization  of  the  Atlas 
National  Bank,  to  the  Home  Insurance  Building  on 
the  northeast  corner  of  La  Salle  and  Adams  streets, 
where  it  continued  to  be  located  until  the  end. 

In  the  spring  of  1900  the  project  of  consolidation 
with  the  First  National  Bank  was  broached.  The 
directors  fully  discussed  the  question,  and  appointed 
a  committee  to  meet  the  similar  body  designated   by 


114  The  First  National  Bank  of  Chicago 

the  board  of  the  other  institution.  Then,  after  hear- 
ing its  report,  and  the  outline  of  the  plan  intended  to 
accomplish  this  purpose,  the  entire  subject-matter  was 
laid  before  a  special  meeting  of  the  stockholders. 
They  approved  the  proposition,  and  it  was  finally- 
determined  to  effect  the  consolidation  by  the  sale  of 
the  assets  to  the  First  National  Bank,  upon  condition 
that  the  board  of  directors  of  the  latter  should  be 
enlarged  and  a  certain  number  of  members  be  elected 
from  those  who  then  formed  the  controlling  body  of 
the  Union  National  Bank.  The  last  directorate  of  the 
liquidating  bank  consisted  of  Messrs.  W.  T.  Baker, 
John  H.  Barker,  S.  E.  Barrett,  William  L.  Brown, 
D.  M.  Cummings,  D.  R.  Forgan,  David  Kelley,  John 
McLaren,  J.  A.  Spoor,  W.  C.  Thorne,  and  F.  S. 
Winston.  Of  these  gentlemen  Messrs.  Barker,  Brown, 
Cummings,  Spoor,  and  Forgan  were  eventually  trans- 
ferred to  the  board  of  the  First  National  Bank. 

Pending  the  full  settlement  of  its  affairs,  the  charter 
of  the  Union  National  Bank  has  not  yet  been  sur- 
rendered. The  association  is  therefore  still  technically 
existent,  but  save  for  this  temporary  purpose  its  career 
is  terminated.  In  due  course,  the  charter  will,  within 
a  comparatively  brief  time,  be  given  up,  and  its  legal 
entity  lost. 


THE    METROPOLITAN 
NATIONAL   BANK 


CHAPTER  VIII 

THE    METROPOLITAN   NATIONAL    BANK 

The  Metropolitan  National  Bank  of  Chicago  was 
established  March  27,  1884,  and  on  May  6,  1884,  was 
authorized  by  the  Comptroller  of  the  Currency  to 
begin  business.  The  bank  opened  its  doors  on  May 
12,  1884,  at  100  Washington  Street,  where  the  firm 
of  Preston,  Kean  &  Company  had  previously  been 
situated,  and  to  whose  business  the  newly  founded 
institution  succeeded.  The  original  capital  was  $500,- 
000;  Elbridge  G.  Keith,  William  Deering,  T.  W. 
Harvey,  David  Preston,  Samuel  A.  Kean,  F.  W. 
Hayes,  James  L.  Woodward,  E.  Frankenthal,  and 
G.  B.  Shaw  formed  its  first  board  of  directors. 
Elbridge  G.  Keith  was  at  once  elected  president; 
Samuel  A.  Kean,  vice-president;  Henry  A.  Ware, 
acting  cashier;  and  William  D.  Preston,  assistant 
cashier. 

Elbridge  G.  Keith,  who  was  the  chief  factor  in  the 
organization  of  the  bank,  remained  at  its  head  unin- 
terruptedly until  its  amalgamation  with  the  First 
National  Bank  of  Chicago,  on  May  31,  1902.  Samuel 
A.  Kean  served  as  vice-president  until  the  annual  elec- 
tion of  January  15,  1885,  when  he  was  succeeded  by 
Gilbert  B.  Shaw;  this  gentleman  continued  in  that 
position  until  January,  1890,  when  James  L.  Wood- 

117 


iiB   The  First  National  Bank  of  Chicago 

ward  was  chosen  in  his  stead.  He  held  the  post  until 
his  death,  in  the  spring  of  1892.  Because  of  the 
active  part  which  he  took  in  the  management  of  the 
firm  of  Keith  Brothers  of  Chicago,  Mr.  Woodward 
devoted  only  a  portion  of  his  time  to  the  affairs  of  the 
bank.  Nevertheless,  all  matters  of  importance  were 
submitted  to  his  judgment,  and  to  him  the  success 
attained  during  this  period  was  largely  due.  On  June 
3,  1892,  William  Deering,  the  well-known  manufac- 
turer of  harvesting  machinery,  was  elected  vice-presi- 
dent; he  continued  in  office  until  January  9,  1895, 
when  William  J,  Watson  assumed  the  duties  of  that 
post,  which  he  retained  until  the  end.  Henry  A. 
Ware  was  retained  as  acting  cashier  and  second  vice- 
president  until  the  early  part  of  1887,  when  he  resigned 
for  the  purpose  of  entering  into  the  banking  business 
at  Duluth,  Minnesota.  William  D.  Preston  was,  in 
January  of  that  year,  chosen  cashier,  which  position 
he  held  until  October,  1894,  then  voluntarily  retiring 
to  engage  in  other  pursuits.  Howard  H.  Hitchcock, 
formerly  assistant  cashier,  was  thereupon  promoted  to 
be  cashier.  Edward  Dickinson  was  appointed  second 
assistant  cashier  in  June,  1892,  and  named  assistant 
cashier  on  October  16,   1894. 

In  addition  to  the  gentlemen  already  mentioned  as 
directors,  William  J.  Bartlett,  Augustus  A.  Carpenter, 
Arthur  Dixon,  John  Dupee,  B.  A.  Eckhart,  Simeon 
Farwell,  William  A.  Fuller,  E.  T.  Jeffery,  Edson 
Keith,   S.  A.  Kent,  Arthur  Orr,  D.  K.    Pearson,  W. 


The  Metropolitan  National  Bank      119 

D.  Preston,  William  B.  Walker,  and  William  J.  Wat- 
son served  at  some  time  in  that  capacity.  The  last 
officers  and  directors  were:  president,  Elbridge  G. 
Keith;  vice-president,  William  J.  Watson;  cashier, 
Howard  H.  Hitchcock;  assistant  cashier,  Edward 
Dickinson;  directors,  William  Deering,  W.  A.  Fuller, 
Adolphus  C.  Bartlett,  Augustus  A.  Carpenter,  E. 
Frankenthal,  Arthur  Dixon,  B.  A.  Eckhart,  William 
B.  Walker,  E.  T.  Jeffery,  William  J.  Watson,  and 
Elbridge  G.  Keith. 

Upon  assuming  the  business  of  its  predecessors, 
Preston,  Kean  &  Company,  the  Metropolitan  National 
Bank  showed  deposits  approximating  $1,400,000. 
During  the  eighteen  years  of  its  career  its  growth  was 
uniform  and  steady  until  at  the  time  of  its  absorption 
by  the  First  National  Bank  its  total  deposits  were 
about  $22,000,000.  The  able  manner  in  which  the 
institution  was  managed  is  demonstrated  by  the  fact 
that  after  an  existence  of  only  seven  years  it  had  accu- 
mulated a  surplus  equal  to  its  capital.  Prior  to  July 
I,  1 89 1,  its  business  had  grown  to  such  a  magnitude 
that  the  capital  stock  was  at  that  time  increased  to 
$2,000,000  by  issuing  a  stock  dividend  of  loofo  to  the 
old  stockholders,  and  by  disposing  of  $1,000,000 
worth  of  new  stock  at  $200  per  share,  thus  giving  a 
capital  of  $2,000,000  and  a  surplus  fund  of  $1,000,- 
000,  The  bank  was  successfully  guided  through  the 
perilous  days  of  1893  and  the  years  of  depression 
which  followed.     At  the  time  of  liquidation  its  funds 


I20   The  First  National  Bank  of  Chicago 

in  surplus  account  and  undivided  profits  amounted  to 
nearly  $1,750,000.  From  the  date  of  its  inauguration 
until  April,  1902,  there  were  paid  regular  dividends 
aggregating  about  $2,000,000 — an  amount  equal  to 
the  full  capital  stock. 

In  the  spring  of  1885  the  bank  removed  from  100 
Washington  Street  to  the  building  at  the  northwest 
corner  of  LaSalle  and  Monroe  streets,  and  again,  in 
the  early  part  of  1892,  to  larger  and  more  commodious 
quarters  in  The  Temple  at  the  southwest  corner  of 
Monroe  and  LaSalle  streets. 

The  following  statements  as  rendered  to  the  Comp- 
troller of  the  Currency,  in  compliance  with  his  ofificial 
calls,  show  the  condition  of  the  institution  at  the 
dates  given. 

REPORT  OF  JUNE   20,  1884 

RESOURCES 

Loans  and  discounts        ------  $1,265,177.81 

Overdrafts             3,391.48 

United  States  bonds  (at  par) 50,000.00 

Other  stocks  and  bonds 207,686.00 

Due  from  approved  reserve  agents        -        -        -  113,055.62 

Due  from  other  national  banks            .        .        .        .  72,091.03 

Due  from  state  banks  and  brokers         ...  104,974,43 

Furniture  and  fixtures 5,500.00 

Premium  on  bonds           ------  801,08 

Cash  and  checks  for  clearings 439i577-35 

Due  from  United  States  Treasurer         -        -        -  4,000.00 

Total $2,266,254.80 


The  Metropolitan  National  Bank      121 


LIABILITIES 

Capital  stock  paid  in $500,000.00 

Undivided  profits 9,607.68 

Circulation 45,000.00 

Deposits 1,711,647.12 

Total §2.266,254.80 

REPORT  OF   DECEMBER    19,  1894 

RESOURCES 

Loans  and  discounts $8,522,687.94 

Overdrafts   -        - 3,686.38 

United  States  bonds  (at  par)   -----  50,000.00 

Other  stocks  and  bonds 714,267.10 

Due  from  banks      -        .        .        .        $1,197,142.50 
Cash  and  checks  for  clearings    -        -     2,644,324.33 

3,841,466.83 

Due  from  United  States  Treasurer         ...  20,851.20 

Total -  $13,152,959.45 

LIABILITIES 

Capital  stock  paid  in $2,000,000.00 

Surplus  fund  and  undivided  profits      -        -        -  1,097,768.20 

Circulation -  1,475.00 

Dividends  unpaid          - 395-oo 

Deposits 10,053,321.25 

Total             -        -  $13,152,959.45 

REPORT  OF  APRIL  30,  1902 

RESOURCES 

Loans  and  discounts $14,727,611.61 

Overdrafts  secured  and  unsecured     -        -        -  4,758.83 

United  States  bonds  (at  par)           .        .        -        -  1,000,000.00 

Other  stocks  and  bonds 860,233.33 

Due  from  banks       ...        -       $3,097,655.09 
Cash  and  checks  for  clearings    -        -     7,002,948.89 

10,100,603.98 

Due  from  United  States  Treasurer    -        -        -  42,000.00 

Total $26,735,207.75 


122    The  First  National  Bank  of  Chicago 


LIABILITIES 

Capital  stock  paid  in $2,000,000.00 

Surplus  fund  and  undivided  profits  -        -        -  1.626,287.98 

National  bank  notes  outstanding           -        -        -  834,150.00 

Dividends  unpaid 1,504.50 

Deposits 22,273,265.27 

Total $26,735,207.75 


The  charter  of  the  .Metropolitan  National  Bank 
expires  in  1904,  at  which  time  it  is  expected  the  asso- 
ciation will  cease  to  exist.  The  recollection  of  its 
usefulness  will,  however,  still  long  be  borne  in  mind 
by  all  those  who,  through  periods  of  prosperity  and 
depression,  were  so  closely  and  pleasantly  associated. 


THE   NEW   BANK   BUILDING 


CHAPTER    IX 

THE    NEW    BANK   BUILDING 

The  First  National  Bank  originally  occupied  its 
present  quarters  at  the  northwest  corner  of  Dearborn 
and  Monroe  streets  in  1882.  They  were  then  con- 
sidered ample  for  a  long  term  of  years.  The  National 
Safe  Deposit  Co.,  a  subsidiary  corporation,  had  leased 
the  ground  from  the  Board  of  Education  for  ninety- 
nine  years,  and  had  erected  the  edifice  especially  with 
a  view  to  the  accommodation  of  the  principal  institu- 
tion. The  arrangement  on  the  part  of  the  latter  com- 
prised the  rental,  for  its  offices,  of  the  entire  main 
floor,  as  designed  for  it,  and  such  other  room  as  might 
from  time  to  time  be  required. 

During  the  past  twenty  years  the  business  of  the 
bank  has  increased  in  an  ever-ascending  ratio,  and 
gradually  the  space  used  by  it  has  become  more  and 
more  crowded — although  within  the  last  two  or  three 
years  both  the  basement  and  some  other  portions  of 
the  building  have  been  taken  for  various  purposes — 
until  at  length  the  necessity  for  relief  by  the  construc- 
tion of  an  entirely  new  edifice  has  become  imperative. 
At  this  time,  when  in  accordance  with  the  act  approved 
July  12,  1882,  the  charter  of  the  association  has  just 
been  extended   for  another  period   of  twenty  years, 

125 


126   The  First  National  Bank  of  Chicago 

the    improvement    of    its    facilities    seems    peculiarly 
appropriate. 

The  decision  was  therefore  recently  taken,  that 
the  erection  of  a  new  building  upon  the  present  site 
and  such  adjoining  ground  as  might  be  secured  by 
lease  or  purchase  was  not  only  necessary,  but  per- 
fectly feasible.  Pursuant  to  this  plan,  and  after  some 
considerable  negotiation,  the  National  Safe  Deposit 
Co.  has  bought,  at  an  approximate  cost  of  one  million 
dollars,  the  two  properties  on  Monroe  street  just  west 
of  the  ground  held  under  lease;  these  lots  are  now 
covered  by  the  Montauk  Block,  a  structure  ten  stories 
high,  one  of  the  earliest  modern  skyscrapers  built  in 
Chicago,  and  by  the  building  heretofore  occupied  by 
Bradner,  Smith  &  Co.  as  a  wholesale  paper  ware- 
house; they  include  a  frontage  of  one  hundred  and 
twenty-three  feet,  which,  with  the  one  hundred  and 
eight  feet  now  rented  from  the  Board  of  Education, 
makes  a  total  of  two  hundred  and  thirty-one  feet  front- 
age on  Monroe  street  controlled  by  the  bank.  The 
frontage  on  Dearborn  street  is  one  hundred  and 
ninety-two  feet.  It  is  now  proposed  to  erect  upon 
this  entire  property,  including  an  area  of  forty-four 
thousand  two  hundred  and  seventy-four  square  feet,  a 
building  sixteen  stories  in  height,  and  inclosing  ten 
and  one-half  millions  of  cubic  feet.  The  cost,  esti- 
mated at  five  million  dollars,  has  been  provided  by  a 
recent  increase  in  the  capital  of  the  National  Safe 
Deposit  Co.  to  the  sum  of  two  million   five  hundred 


The  New  Bank  Building  127 

thousand  dollars,  and  by  the  issue  of  a  similar  amount 
of  bonds. 

While  it  is  not  possible  at  the  present  moment  to 
give  all  the  details  of  construction,  and  the  interior 
arrangement  of  the  edifice  as  it  will  in  due  time  be 
completed,  it  may  prove  of  interest,  nevertheless,  here 
to  sketch  in  outline  its  main  features.  With  this 
purpose  in  view  the  architects,  D.  H.  Burnham  &  Co., 
have  prepared  a  brief  description,  which  reads: 

Exterior. — The  building  will  practically  front  on  four  sides, 
there  being  an  alley  on  the  north  and  a  court  on  the  west. 
There  will  also  be  an  interior  court  measuring  sixty  by  ninety  feet, 
thus  providing  ample  light  and  ventilation.  The  construction  will 
be  entirely  fire-proof.  The  exterior  walls  will  be  faced  with  granite 
and  the  court  walls  with  white  enameled  brick.  All  steel  will  be 
buried  in  cement. 

In  general  the  design  of  the  building  is  in  the  old  Roman  style. 
The  first  three  floors,  sixty  feet  in  lieight,  which  are  to  be  occupied 
by  the  bank,  and  its  dependencies  will  be  marked  by  a  cornice 
supported  on  massive  Doric  pilasters,  forty  feet  in  height,  inclos- 
ing the  arched  openings  of  the  bank  proper.  The  aggregate  height 
of  these  three  lower  stories  will  be  equal  to  that  of  an  ordinary  five- 
story  building.  The  banking  room  will  thus  be  clearly  indicated; 
its  appearance  will  be  imposing  and  in  proportion  to  its  magni- 
tude. Above  this  point  the  exterior  treatment  will  consist  of  win- 
dows simply  spaced  to  suit  the  offices  of  the  typical  floors. 

From  the  fourth  story  to  a  belt  course  at  the  fourteenth  story 
the  walls  are  plain,  the  only  ornament  being  slightly  projecting 
sill  courses.  The  main  pier  lines  that  mark  the  division  of  the 
lower  floors  will  continue  up  and  terminate  at  the  fifteenth  and 
sixteenth  stories  in  an  arcade  supporting  the  main  cornice  which 
is  of  the  Corinthian  order.  This  upper  arcade  is  broad  and  simple 
and  its  deep  reveal  discloses  the  unusual  thickness  of  the  exterior 
structural  piers  of  the  building.  The  walls  really  extend  up  to  and 
include  the  parapet,  the  cornices  growing  entirely  out  of  them. 

The  design  is  severely  simple  in  keeping  with  the  natural 
quality  of  granite,  which  material  is  used  fcjr  the  entire  fronts  of 
the  building.  Good  and  impressive  proportions  are  relied  upon 
for  general  effect  and  merely  ornamental  treatment  is  everywhere 
avoided.  The  purpose  is  to  suggest  the  strength  and  dignity  of  a 
great  financial  institution. 


128    The  First  National  Bank  of  Chicago 


Entrances. — There  will  be  two  main  entrances  to  the  bank 
and  office  building.  The  principal  one  will  be  from  Dearborn 
street.  Here  the  vestibule  will  be  sixty  feet  wide,  entered  by 
twelve  doors.  It  will  be  eighty  feet  deep  and  forty-five  feet  in  height, 
entirely  finished  in  marble,  and  with  the  grand  staircase  of  broad, 
easy  steps  ascending  twelve  feet  from  the  street  level  to  the 
banking-room  floor.  On  each  side  of  the  staircase  will  be  five 
elevators,  connecting  with  all  the  floors  to  the  top  of  the  building. 

The  entrance  from  Monroe  street  will  be  nearly  as  important. 
The  vestibule  here  will  be  twenty-four  feet  wide  by  fifty  feet  deep, 
with  seven  elevators  to  the  top  of  the  building  and  a  broad  stair- 
case to  the  bank. 

Interior.— The  typical  floor  plans  are  divided  into  offices,  of 
modern  sizes  and  arrangement,  supplied  with  every  convenience. 
There  will  be  an  interior  corridor  on  every  floor  extending  entirely 
around  the  building.  Seventeen  elevators  and  three  staircases 
from  the  ground  to  the  top  of  the  structure  will  afford  ample 
means  of  ingress  and  egress  to  the  occupants.  In  every  respect 
the  edifice  will  be  strictly  modern,  and  will  be  equipped  with  all 
the  latest  conveniences  and  novelties  which  add  so  greatly  to  the 
accommodations  furnished  by  city  office  buildings. 

Banking-Room. — The  main  banking-room  will  occupy  the 
entire  first  floor,  twelve  feet  above  the  street,  two  hundred  and 
thirty  feet  long,  one  hundred  and  ninety  feet  wide,  and  thirty-two 
feet  high,  together  with  an  additional  floor  of  corresponding  area 
and  fifteen  feet  in  height  immediately  above  it,  and  overlooking  it 
through  the  central  court.  These  stories  will  architecturally  be 
treated  as  a  unit.  The  main  entrance  by  the  grand  staircase  from 
Dearborn  street  will  be  through  an  archway  opening  immediately 
into  the  central  court,  which,  measuring  sixty  by  nmety  feet,  will 
be  surrounded  by  an  arcade,  and  roofed  over  at  a  height  of  fifty 
feet  with  a  crystal  plate  glass  dome,  thus  being  brilliantly  lighted. 
From  this  court  broad  staircases  and  private  elevator  will  con- 
nect with  the  safe  deposit  department  below  and  additional  floors 
above. 

Safety  Deposit  Vaults. — The  National  Safe  Deposit  Com- 
pany will  occupy  sixteen  thousand  one  hundred  and  four  square 
feet  of  space  on  the  ground  floor,  with  its  entrance  through  the 
vestibule  on  Dearborn  street.  The  Safety  Deposit  Vault  itself  will 
measure  forty-two  by  fifty  feet,  comprising  an  area  of  two  thousand 
one  hundred  square  feet,  and  will  contain  eighteen  thousand 
boxes.  Coupon-rooms,  committee-rooms,  and  reception-rooms  for 
men  and  women  will  be  provided.  The  office,  vestibule,  and  all 
other  appointments  will  be  thoroughly  in  keeping  with  the  general 
tone  of  the  building. 


The  New  Bank  Building  129 

The  foregoing  account,  while  in  many  respects 
inadequate,  and  in  its  details  incomplete,  will  still 
serve,  it  is  hoped,  to  convey  some  general  impression 
of  the  magnitude  and  character  of  the  proposed  edifice. 
During  its  erection  business  will  be  uninterruptedly 
continued,  first  in  the  old  structure  as  now  occupied 
until  the  first  portion  of  the  new  building  on  the  west 
half  of  the  Monroe  street  frontage  shall  have  been 
completed.  The  bank  will  then  remove  into  this 
finished  section ;  the  old  building  at  the  corner  of 
Dearborn  and  Monroe  streets  will  be  demolished  and 
the  remainder  of  the  new  edifice  completed.  The 
work  of  razing  the  Montauk  Block  and  the  former 
Bradner  Smith  building  has  already  been  commenced. 
The  section  to  be  erected  on  this  ground  will,  it  is 
hoped,  be  finished  within  one  year;  the  entire  struc- 
ture, as  projected,  will  be  ready  for  occupancy  on  or 
before  May  i,  1904. 


BIOGRAPHICAL 


I 

BIOGRAPHIES  OF  PERSONS  FORMERLY  CON- 
NECTED WITH  THE  BANK,  BUT  NOW 
DECEASED 

EDMUND    AIKEN 

Edmund  Aiken  was  born  at  Norfolk,  Connecticut,  on  April  29, 
1812  ;  the  eldest  of  the  six  children  of  Lemuel  and  Sarah  Thomp- 
son Aiken.  He  was  of  Scotch  ancestry.  Henry  Aiken,  the  founder 
of  the  American  branch  of  the  family,  migrated  from  Scotland  in 
1710.  Lemuel  Aiken  was  a  well-educated  man  of  high  reputation 
in  his  community.  Edmund,  while  a  child,  enjoyed  all  the  usual 
comforts  of  a  good  home,  and  grew  up,  like  so  many  others  of  his 
social  position  in  New  England,  under  the  incitement  of  an  inspir- 
ing past  and  the  influence  of  strict  religious  sentiments.  In  his 
youth  he  received  a  good  academic  education,  and  at  the  age  of 
twenty  entered  Yale  College,  where  his  name  appears  on  the  offi- 
cial records  as  Edmund  Akins.  Although  physically  not  strong, 
he  persevered  for  two  years  (1831-1833)  in  close  application  to 
study.  The  condition  of  his  health  then  rendered  the  abandon- 
ment of  his  course  imperative.  With  sorrow  and  regret  he  re- 
turned to  Norfolk  ;  but  fortunately  in  time  fully  recuperating,  he 
gradually  tended  toward  a  business  career.  His  first  venture  was 
a  partnership,  in  his  native  place,  with  his  brother-in-law,  Eleazer 
Dowd,  the  two  buying  out  the  interest  of  the  former  proprietor, 
Mr.  Grove  Lawrence,  in  a  mercantile  establishment.  For  one  year 
(1834)  this  connection  continued;  but  at  length  young  Aiken,  who 
seems  for  some  time  previously  to  have  cherished  the  desire  to  go 
West,  yielding  to  the  popular  movement  of  the  day,  started  out  in 
search  of  a  new  home  and  greater  fortune.  Sherman  Brothers,  of 
Mishawaka,  Indiana,  offered  him  an  opportunity  to  enter  their  em- 
ploy, which  opening  he  gladly  embraced. 

Here,  however,  he  remained  only  during  a  brief  interval  (1835), 
for  little  by  little  his  early  project  of  obtaining  a  professional  edu- 
cation once  more  gained  the  mastery  over  him  ;  having  entirely 
recovered  his  health,  and  likewise  accumulated  a  small  sur- 
plus fund,  he  determined  to  study  law.  With  this  aim  he  re- 
moved to  Syracuse,  New  York,  entered  the  office  of  Hon.  B.  Davis 
Noxon;  and  later  that  of  Hon.  James  R.  Lawrence,   and  Judge 

133 


134   The  First  National  Bank  of  Chicago 

Grove  Lawrence,  both  well  known  at  the  bar  of  that  city  ;  was 
given  by  the  latter  license  to  apply  for  admission  to  the  bar  on 
December  ii,  1839  ;  was  admitted  as  solicitor  in  the  Court  of 
Chancery  of  New  York  on  January  27,  1841  ;  and  finally  as 
counselor  on  January  2,  1844.  About  this  time  Mr.  Archibald 
Thompson,  of  Marcellus,  New  York,  retiring  from  active  practice, 
offered  his  influence  and  patronage  to  Mr.  Aiken,  who  eagerly  wel- 
comed the  larger  field  thus  afforded  him.  There  settling,  as  he 
thought  permanently,  in  life,  he  diligently  applied  himself  for  sev- 
eral years  to  professional  duties,  with  the  exception  of  one  year 
devoted,  at  the  earnest  solicitation  of  the  local  board,  to  teaching 
in  the  high  school.  It  was  in  Marcellus  that,  on  October  28, 
1841,  Mr.  Aiken  was  united  in  marriage  to  Elpha  Reed  Bradley, 
the  youngest  daughter  of  Jonathan  and  Rhoda  Cody  Reed,  and 
the  widow  of  Walter  Bradley,  deceased.  In  this  rural  environ- 
ment Mr.  Aiken  resided  fourteen  years,  but  all  this  time  he 
seems  to  have  cherished  a  secret  longing  for  a  wider  scene 
of  endeavor.  Coming,  in  1855,  on  a  tour  of  investigation  as  far 
West  as  Chicago,  his  decision  was  taken  ;  returning  home,  he 
sold  his  homestead  and  farm,  closed  his  office,  settled  his  other 
affairs,  and  in  the  winter  of  i855-i856once  more  arrived  in  this  city 
with  the  determination  of  making  it  the  place  of  his  permanent 
abode. 

In  the  spring  of  1856  Mr.  Aiken  opened  a  law  office  in  con- 
nection with  George  W.  Snow,  in  a  building  located  on  Clark 
street,  at  the  northeast  corner  of  the  alley,  between  Lake  and 
Randolph  streets,  engaging,  together  with  the  pursuit  of  his  pro- 
fession, in  a  general  loaning  business,  which,  as  the  event  proved, 
ultimately  required  his  entire  attention.  One  year  later,  John  D. 
Norton,  a  capitalist  of  Syracuse,  New  York,  became  associated 
with  him,  and  as  he  furnished  considerable  funds  for  loaning  pur- 
poses, the  name  of  Aiken  &  Norton  was  adopted.  In  several  direc- 
tories of  that  day  this  firm  is  stated  as  doing  business  in  the  Seth 
Payne  Building,  at  47  Clark  street,  just  opposite  Mr.  Aiken's  law 
office.  Two  years  subsequently  a  removal  occurred  to  Room  2  in 
the  Lewis  Building,  then  situated  at  the  southwest  corner  of  Clark 
and  South  Water  streets.  In  the  spring  of  i860  Jonathan  Burr  was 
admitted  to  the  firm  as  a  silent  partner,  retiring,  however,  after 
one  year.  In  the  latter  part  of  i860  Mr.  Norton,  while  on  a  visit 
to  Chicago,  suddenly  died;  so  that  thenceforth  Mr.  Aiken,  although 
continuing  the  business  under  the  old  style,  was  in  absolute  control 
until  the  spring  of  1863.  In  1862  the  offices  of  the  house  were 
moved  to  Room  i  in  the  old  Board  of  Trade  Building  on  the  north- 
east corner  of  La  Salle  and  Soutli  Water  streets. 

At  this  time  Mr.  Aiken  had  already  attained  an  influential 
position  in  the  city,  and  was  recognized  as  a  cautious  but  still  an 
astute  and  aspiring  financier.    In  the  discussion  of  the  measure 


B 


lOGRAPHICAL  I35 


for  the  establishment  of  a  national  banking  system,  as  elsewhere 
related,  he  took  an  active  interest,  and  through  his  energy  and 
resourceful  character  a  small  group  of  capitalists  was  brought  into 
sympathy  with  the  project  of  founding  in  Chicago  a  banking  institu- 
tion under  the  new  law.  After  the  determination  was  once  taken  no 
time  was  lost.  The  act  had  scarcely  been  adopted  by  Congress 
when  the  promoters  of  the  enterprise  made  their  application  for  a 
charter,  and  the  First  National  Bank  of  Chicago  was  immediately 
authorized  to  begin  business.  Mr.  Aiken  was  elected  one  of  the 
board  of  directors,  and  likewise  chosen  the  first  president  of  the 
new  corporation.  In  this  capacity  he  served  with  distinction  and 
success  until  the  time  of  his  death,  January  12,  1867;  then  not  quite 
fifty-five  years  of  age,  he  unexpectedly  succumbed  to  an  attack  of 
heart  disease.  During  the  later  years  of  life  he  was  also  a  part- 
ner in  the  firm  of  Davis,  Pope  &  Company,  leading  members  of 
the  Board  of  Trade,  although  he  himself  never  actively  took  any 
part  in  speculative  or  mercantile  business.  In  the  resolutions 
adopted  by  that  body  upon  the  occasion  of  his  demise,  he  was 
nevertheless,  mourned  as  "one  of  the  most  prominent  and  active 
participants  in  business  circles."  The  minutes  spread  upon  the 
records  of  the  First  National  Bank,  also,  of  course,  testify  to  the 
high  degree  of  esteem  and  popularity  which  he  enjoyed. 

In  personal  appearance  Mr.  Aiken  was  tall,  straight,  and  im- 
pressive; he  always  walked  with  an  air  of  authority.  In  manner 
he  was  ever  cordial,  and  as  a  fact  very  sociably  inclined.  Devoted 
to  the  opera,  and  endowed  with  a  strong  admiration  for  the  fine 
arts,  he  was  not  neglectful  of  scientific  pursuits.  His  collection 
of  minerals  and  corals,  known  throughout  the  country,  was  highly 
valued  by  those  learned  in  this  department  of  knowledge.  The 
old  Academy  of  Science  was  organized  in  the  parlors  of  his  home, 
on  which  occasion  Professor  Agassiz  was  his  guest.  In  public 
spirit  and  charitable  work  he  was  not  lacking.  The  Home  for  the 
Friendless  was,  perhaps,  the  chief  object  of  his  concern.  As  a 
Christian,  he  was  well  disposed  toward  all  religious  doctrines;  a 
Unitarian  in  his  views  and  by  profession,  he  nevertheless  attended 
for  many  years  the  Second  Presbyterian  Church,  over  which  Dr. 
Patterson  presided.  Politically  he  was  a  staunch  Republican. 
During  the  war  days  he  contributed  much  time  and  considerable 
means  toward  the  success  of  the  Union  cause.  The  two  Sanitary 
Fairs  held  in  Chicago  during  the  autumns  of  1863  and  1864,  to 
raise  funds  for  the  relief  of  the  sick  and  wounded  soldiers  of  the 
Union  armies,  received  his  hearty  co-operation,  and  evoked  on  his 

f)art  many  expressions  of  sympathy,  while  obtaining  from  him  not 
ess  valuable  practical  support. 

The  family  residence  of  Mr.  and  Mrs.  Aiken  was  at  222 
Michigan  avenue,  on  the  site  where  the  Auditorium  Annex  now 
stands.     Here  they  entertained  most  hospitably  their  numerous 


136    The  First  National  Bank  of  Chicago 

friends,  among  whom  they  might  claim  as  intimates  many  promi- 
nent men  and  women  of  the  land. 

Since  the  death  of  Mr.  Aiken  his  widow  has  traveled  exten- 
sively. Fond  of  a  good  entertainment,  an  interesting  lecture,  or 
first-class  play,  Mrs.  Aiken  still  lives.  Her  home  is  with  her 
nephew,  George  Chapman,  35  Lake  View  avenue,  Chicago. 
At  the  age  of  ninety-five  years,  that  birthday  having  been  cele- 
brated by  her  on  September  23,  1901,  she  is  still  comparatively 
active  in  her  mental  faculties,  and  young  as  ever  in  heart  and 
spirit. 


TRACY  J.  BRONSON 

Tracy  J.  Bronson  was  born  in  Connecticut  about  1825.  He 
enjoyed  only  a  common -school  education.  When  he  was  still 
a  youth  he  removed  to  Ohio  and  engaged  in  keeping  a  country 
store  in  a  town  near  Cincinnati.  Somewhat  later,  about  1853, 
he  became  a  member  of  the  wholesale  grocery  firm  of  Bronson, 
Warren  &  Co.,  doing  business  in  that  city.  In  1856  he  came 
to  Chicago  and  embarked  in  the  produce  and  commission  busi- 
ness, in  partnership  with  George  C.  Walker,  under  the  name  and 
style  of  Walker,  Bronson  &  Co.  He  was  likewise  connected  with 
the  banking  house  of  Tucker,  Bronson  &  Co.  In  1861  Walker, 
Bronson  &  Co.  dissolved,  and  Mr.  Bronson  then  continued  in  the 
general  produce  business  exclusively  for  his  own  account  and 
under  his  own  name.  Among  his  friends  he  counted  Daniel 
Thompson,  whose  sketch  appears  elsewhere.  Both  these  gentle- 
men seem  to  have  desired,  chiefly  for  reasons  of  health,  to  leave 
Chicago.  Seeking  some  other  home  and  occupation  they  were 
attracted  by  sugar  planting.  In  the  winter  of  1866-67  Mr.  Bron- 
son went  to  Louisiana,  purchased  a  sugar  plantation,  in  which 
Charles  H.Walker,  of  Chicago,  was  also  a  partner,  and  continued 
in  this  business  until  his  death.  Mr.  Bronson  during  his  residence 
in  Chicago  was  prominent  in  many  lines  of  endeavor.  Associated 
with  Mr.  Aiken  and  other  enterprising  citizens,  he  was  one  of  the 
founders  and  original  stockholders  in  the  First  National  Bank, 
and  served  as  a  member  of  its  board  of  directors  from  the  time 
of  its  organization  until  1867.  He  was  thoroughly  devoted  to  busi- 
ness, and  was  a  bold  and  successful  as  well  as  a  large  operator 
on  the  Chicago  Board  of  Trade  during  the  period  between  1856 
and  1866.  He  was  recognized  as  an  excellent  judge  of  values, 
and  had  the  reputation  of  being  a  splendid  trader. 

In  1876  he  returned  to  Chicago  for  a  brief  visit,  and  quite 
unexpectedly  died  here  at  the  Leland  Hotel. 


Biographical  137 


FREDERICK    CRUMBAUGH 

Frederick  Crumbaugh  was  bom  at  Hagerstown,  Maryland, 
on  December  20,  1816.  When  he  was  two  years  of  age,  his  parents 
removed  to  Xenia,  Ohio,  where  he  lived  until  twenty  years  old, 
in  the  mean  time  obtaining  an  ordinary  school  education. 

He  then  went  to  Columbus,  Ohio,  for  one  year;  thence  to  Mad- 
ison, Indiana,  where  he  resided  until  1856.  As  a  young  man  he 
seems  to  have  had  a  predisposition  toward  the  study  of  medicine. 
Through  his  own  endeavors,  and  chiefly  alone,  he  pursued  his  prep- 
arations for  a  medical  career,  and  finally  was  granted  a  diploma 
by  the  Transylvania  Medical  College  of  Lexington,  Kentucky, 
He  then  followed  his  chosen  profession  during  four  years  at  Mad- 
ison, Indiana.  Meanwhile  he  also  acted  in  various  other  capacities, 
being  employed  as  book-keeper  for  Barber,  Buell  &  Shaw,  as 
cashier  in  the  Firemen  and  Mechanics'  Bank,  and  being  likewise 
interested  as  a  partner  in  the  drug  trade. 

In  1856,  being  then  forty  years  of  age.  Dr.  Crumbaugh  came 
to  Chicago.  Apparently  he  had  accumulated  considerable  means 
in  early  life,  for  he  at  once  became  associated  with  others  in  the 
wholesale  dry  goods  business,  under  the  firm  name  of  Richards, 
Crumbaugh  &  Shaw.  Their  first  place  of  business  was  located  on 
South  Water  street,  near  River  street  ;  a  little  later  at  15  and  17 
Lake  street,  and  subsequently  at  37  and  39  Lake  street.  Just  prior 
to  the  great  fire  the  firm  had  erected  a  fine  new  building  on  Wa- 
bash avenue,  between  Randolph  and  Washington  streets,  for  their 
own  use.  They  had  occupied  this  structure  only  a  comparatively 
short  time  when  the  conflagration  swept  everything  before  it.  The 
total  loss  incurred  by  the  copartnership  amounted  to  §300,000. 
Although  one  of  the  most  important  houses  in  the  city,  already 
established  for  a  period  of  fifteen  years,  it  was  not  considered 
advisable  to  resume  after  this  catastrophe. 

After  the  fire  Dr.  Crumbaugh  did  not  again  engage  in  active 
business,  although  he  had  a  considerable  sum  invested  in  the 
wholesale  candy  house  of  Page  &  Company,  then  located  on  Lake 
street.  From  i86q  to  1872  he  served  as  a  member  of  the  board 
of  directors  of  the  First  National  Bank. 

Dr.  Crumbaugh  was  stricken  with  apoplexy  one  Sunday  even- 
ing while  attending  the  Second  Presbyterian  Church,  of  which  he 
was  an  elder  and  a  devoted  member.  He  was  immediately  re- 
moved to  his  home.  No.  848  Wabash  avenue,  and  died  there  at 
a  somewhat  later  hour,  on  March  16,  1879.  He  left  a  wife,  two 
sons,  and  a  daughter. 


138   The  First  National  Bank  of  Chicago 


ELBRIDGE  G.  HALL 

Elbridge  G.  Hall  was  born  at  Rutland,  Vermont,  on  April  2, 
1815.  He  received  only  such  education  as  was  afforded  by  the 
common  schools  of  that  day.  In  his  early  youth  he  was  appren- 
ticed to  a  mercantile  house  in  his  native  town.  After  some 
unimportant  changes  he  started  in  the  iron  trade  at  Rutland, 
where  be  remained  engaged  in  the  same  pursuit  until  his  twenty- 
sixth  year.  He  then  came  to  Chicago;  at  first  followed  the  loan 
and  mortgage  business,  but  very  soon,  in  1841,  opened  a  wholesale 
hardware  store  on  South  Water  street,  near  La  Salle  street,  in 
conjunction  with  William  Blair,  under  the  style  of  Hall  &  Blair. 
Considerable  difficulty  was  experienced  in  placing  this  venture 
upon  a  sound  and  paying  basis.  In  the  meantime  there  was  a 
removal  to  a  building  on  Washington  street  near  the  river,  and 
then  finally,  as  prosperity  increased,  to  the  northeast  corner  of 
Lake  street  and  Michigan  avenue,  where  the  house  is  yet  located. 
In  1853  the  partnership  was  dissolved,  it  being  arranged  that  Mr. 
Blair  should  continue  in  the  hardware  line,  and  Mr.  Hall  retain 
control  of  the  iron  department.  At  this  date  Seneca  D.  Kimbark 
became  associated  with  Mr.  Hall  as  junior  partner,  the  name 
adopted  being  Hall  &  Kimbark.  From  time  to  time  others  of  the 
Kimbark  brothers  were  admitted  to  the  firm.  For  many  years  Mr. 
Hall  devoted  himself  assiduously  to  the  promotion  of  this  business. 
Finally,  in  1871,  when  he  withdrew  from  active  participation  in 
it— although  he  retained  a  silent  interest — the  house  took  the  title 
of  Kimbark  Brothers,  and  subsequently  that  of  S.  D.  Kimbark, 
as  it  is  still  known. 

From  1863  to  1870  Mr.  Hall  served  as  a  director  of  the  First 
National  Bank,  performing  in  this  connection  a  modest  but  efficient 
part  in  the  early  development  of  the  institution.  Otherwise  his 
mvestments  and  activities  were  mostly  in  real  estate.  Aside  from 
his  daily  pursuits,  Mr.  Hall  took  little  part  in  the  life  of  the  com- 
munity. He  was  essentially  a  man  of  one  avocation.  He  never 
held  any  political  office,  although  in  sentiment  a  Republican.  He 
never  sought,  but  rather  shunned,  society.  Only  in  one  other  field 
did  he  distinguish  himself.  To  the  church  of  his  choice  he  was 
devoted.  Universalist  by  education  and  conviction,  he  was  a 
regular  attendant  at  St.  Paul's  Church,  and  one  of  its  strongest 
supporters.  During  the  entire  period  of  his  residence  in  Chicago 
he  was  a  liberal  contributor  to  the  funds  of  the  First  Universalist 
Society.  He  was  also  for  some  years  a  trustee  of  Lombard  Col- 
lege at  Galesburg,  Illinois,  and  added  $10,000  to  its  endowment 
fund.  With  Rev.  W.  H.  Ryder,  the  well  known  clergyman  of 
those  days,  he  was  closely  and  intimately  associated  in  many 
philanthropic  works. 


Biographical  139 


Personally  Mr.  Hall  was  always  of  a  delicate  constitution. 
He  was  of  medium  build  and  fragile  physique.  His  amusements 
and  recreations  were  in  consonance  with  his  spirit.  He  took 
great  delight  in  his  garden,  its  flowers,  and  botanical  research. 
His  tastes  were  aesthetic;  he  himself  was  more  than  an  ama- 
teur in  sketching  and  drawing.  He  was  twice  married;  first, 
in  1850,  to  Elizabeth  Kimbark,  and  after  her  death,  in  1869,  to 
Addie  Moore,  who  still  survives.  His  widow  subsequently  mar- 
ried Rev.  Sumner  Ellis,  of  this  city,  and  since  his  death  has  been 
well  known  as  Mrs.  A.  M.  H.  Ellis. 

Mr.  Hall  died  on  Friday,  April  13,  1877,  aged  62  years. 


CHARLES  HITCHCOCK 

Charles  Hitchcock,  son  of  Charles  and  Abigail  L.  Hall  Hitch- 
cock, was  born  at  Hanson,  Plymouth  County,  Massachusetts,  on 
April  4,  1827.  He  was  of  a  long  line  of  distinguished  ancestors, 
who  originally  came  from  England,  in  1644.  His  early  years  were 
spent  on  the  family  farm  and  in  attendance  upon  the  public  schools 
of  that  neighborhood.  In  1846  he  entered  Phillip's  Academy,  An- 
dover,  Massachusetts,  and  one  year  later  matriculated  at  Dart- 
mouth College.  Throughout  his  school  career  he  devoted  himself 
assiduously  to  classical  studies,  and  was  likewise  noted  for  his 
pure  and  faultless  English  style.  At  the  close  of  college  life,  he 
began  the  study  of  law  in  the  office  of  Daniel  Blaisdell  at  Han- 
over. One  year  subsequently,  in  1852,  removing  to  Washington, 
he  passed  some  time  in  giving  Latin  and  Greek  instruction,  and 
lecturing  upon  various  subjects.  Finally,  in  1853,  he  joined  the 
senior  class  of  the  Dane  Law  School  at  Cambridge,  Massachusetts. 
Upon  graduation,  in  1854,  he  was  admitted  to  the  bar,  and  soon 
thereafter  coming  to  Chicago  commenced  the  active  practice  of 
his  profession.  Within  a  short  time  he  attained  a  prominent  posi- 
tion, and  was  widely  recognized  as  a  man  eminent  among  his 
associates,  assiduous  in  his  purposes,  and  above  all  thoroughly 
honorable  in  his  dealings  with  courts  and  clients. 

Mr.  Hitchcock  only  twice  relaxed  his  early  adopted  resolution 
not  to  accept  public  office.  Immediately  after  the  great  fire  of 
1871,  upon  the  urgent  solicitation  of  those  who  desired  in  that 
emergency  to  protect  the  best  interests  of  ihe  community,  he  was 
chosen  a  member  of  the  board  of  county  commissioners,  which 
position  he  resigned  as  soon  as  he  considered  the  occasion  for  his 
services  had  passed.  He  was  also  elected  to  the  state  constitu- 
tional convention  of  1870,  and  when  it  met  was  chosen  to  preside 
over  its  deliberations.  By  reason  of  his  strong  personality,  his 
skill  as  a  presiding  officer,  his  acquaintance  with  the  fundamental 


140  The  First  National  Bank  of  Chicago 

principles  of  law,  and  the  confidence  which  he  inspired,  he  made 
a  strong  and  lasting  impression  upon  many  provisions  of  the  or- 
ganic law  of  this  state. 

In  1872  Mr.  Hitchcock  was  selected  as  special  counsel  for  the 
First  National  Bank,  serving  the  institution  in  that  capacity  with 
devotion  and  the  greatest  solicitude  during  several  succeeding 
years.  On  July  10,  i860,  he  was  married  to  Annie  McClure,  of 
Chicago.  Mr.  Hitchcock  always  devoted  much  of  his  time  and 
thought  to  the  study  of  the  highest  models  of  English  literature. 
In  his  profession  he  was  known  not  merely  as  an  advocate,  but 
likewise  as  a  scholar.  He  died  on  May  8,  1881.  Hon.  Melville 
W.  Fuller,  now  Chief  Justice  of  the  United  States,  on  presenting 
the  memorial  resolutions  to  the  United  States  Circuit  Court,  paid 
him  a  glowing  tribute. 


SAMUEL  G.  D.  HOWARD 

Samuel  G.  D.  Howard  was  born  at  Preble,  New  York,  during 
1818.  He  received  only  a  common-school  education.  From  the 
age  of  fifteen  years  to  the  time  of  his  death  he  led  a  very  active 
life.  While  a  youth  he  removed  to  Akron,  Ohio,  where,  together 
with  three  brothers,  he  engaged  in  mercantile  business.  A  little 
later  he  went  to  Pittsburg,  Pennsylvania,  and  entered  the  employ 
of  a  large  dry  goods  house,  where  he  remained  until  he  was  nearly 
twenty  years  of  age.  Then  with  an  elder  brother,  who  had  like- 
wise been  associated  with  him  in  Akron,  he  came  to  St.  Charles, 
Illinois,  and  soon  opened  a  dry  goods  store.  He  also  started  an 
establishment  at  Dixon,  Illinois.  In  those  days,  however,  it  was 
exceedingly  difficult  to  secure  the  necessary  stock  from  the  East. 
Mr.  Howard  soon  found  his  enterprises  impracticable,  and  aban- 
doning them  to  his  brother,  removed  to  Chicago.  Here  he 
engaged  in  the  lumber  business  with  L.  P.  Hilliard,  after- 
ward with  George  C.  Morton,  and  again  with  David  Chase, 
all  of  whom  are  now  deceased.  At  one  time  the  firm  name  was 
Hilliard,  Howard  &  Morton.  In  these  early  days  he  often  made 
trips  to  northern  Michigan  for  the  purchase  of  lumber.  He  like- 
wise frequently  visited  the  Michigan  Peninsula.  On  one  of  these 
journeys  he  met  Miss  Caroline  D.  Morton,  of  St.  Joseph,  to  whom 
he  was  subsequently  married,  on  January  8,  1852. 

Besides  the  lumber  business,  Mr.  Howard  was  successful  in 
real  estate,  and  had  at  the  time  of  his  death  amassed  a  consider- 
able fortune.  In  the  winter  of  1862-63  ^^  ^^s  one  of  the  men 
interested  in  the  organization  of  the  First  National  Bank  of  this 
city;  was  elected  to  its  first  board  of  directors,  and  served  in 


Biographical  141 


this  capacity  until  his  decease.  He  died  at  Jacksonville,  Illinois, 
on  September  1 5,  1866.  During  his  lifetime  Mr.  Howard  was  recog- 
nized as  a  prominent  and  influential  resident  of  Chicago. 


BENJAMIN  P.   HUTCHINSON 

Benjamin  Peters  Hutchinson,  son  of  Ira  and  Hannah  Hutch- 
inson, was  born  near  Danvers,  Massachusetts,  on  February  24, 182Q. 
His  early  years  were  passed  upon  a  farm.  While  still  a  young  man 
he  removed  to  Lynn,  and  after  a  short  apprenticeship,  began  the 
manufacture  of  shoes.  In  this  venture  he  was  not  successful. 
A  little  later,  going  to  Boston,  he  pursued  for  two  years  the  com- 
mission business.  In  1856  he  came  West,  and  settling  in  Milwaukee 
remained  there  two  years;  then  he  came  to  Chicago,  where  he 
lived  nearly  continuously  from  1858  until  the  day  of  his  death 
in  1899. 

Mr.  Hutchinson  started  a  commission  ofifice  on  South  Water 
street,  but  subsequently  joined  the  Board  of  Trade,  and  was 
extensively  engaged  in  grain  speculation.  The  best  and  most 
successful  side  of  his  career  was,  however,  as  a  packer  of  pro- 
visions; one  of  the  first  packing  houses  at  the  Union  Stock  Yards 
was  erected  by  him,  and  for  a  time  he  had  the  largest  establish- 
ment of  this  kind  in  the  country.  In  1863  he  was  one  of  the  men 
originally  participating  in  the  inauguration  of  the  First  National 
Bank  of  Chicago,  of  which  for  four  years  he  served  as  a  director. 
In  September  of  1870  he  founded  the  Corn  Exchange  National 
Bank  with  which  he  was  associated  for  many  years.  He  was 
one  of  the  earliest  stockholders  and  promoters  of  the  Traders' 
Insurance  Company,  and  was  active  in  many  other  financial  insti- 
tutions of  Chicago.  During  his  long  career  as  a  member  of  the 
Board  of  Trade,  and  an  operator  in  grain,  he  had  an  exceedingly 
varied  experience.  For  several  years  he  was  one  of  the  best 
known  citizens  of  Chicago,  and  was  always  highly  esteemed  by 
those  who  came  in  close  contact  with  him.  Toward  the  end  of  his 
life  he  retired  from  business,  transferring  many  of  his  large  inter- 
ests to  the  care  of  his  son,  Charles  L.  Hutchinson.  He  died 
at  Chicago,  on  March  16,  1899.  Mr.  Hutchinson  married,  in  1853, 
Sarah  M.  Ingalls,  of  Lynn,  Massachusetts.  They  had  six  chil- 
dren, four  of  whom  are  still  living. 


142    The  First  National  Bank  of  Chicago 


HENRY  M.  KINGMAN 

Henry  M.  Kingman,  son  of  Marshall  and  Abby  Fairbanks 
Kingman,  was  born  at  Winchester,  New  Hampshire,  on  Novem- 
ber 29,  1842.  In  1848  he,  together  with  his  parents,  removed  to 
Boston,  Massachusetts,  where  he  resided  some  eight  years,  in  the 
mean  time  attending  school  at  Watertown,  one  of  the  suburbs  of 
the  city;  then  the  family  returned  to  Winchester,  where  the  lad 
continued  his  education,  which  he  finally  completed  at  Power's 
Institute,  Bernardston,  Massachusetts.  He  then  for  a  short  time, 
in  1861,  lived  in  Albany,  New  York,  where  he  was  employed  in 
the  office  of  a  lumber  firm;  and  afterwards,  in  1862,  when  twenty 
years  of  age,  removed  to  Dubuque,  Iowa.  Upon  his  arrival  there  he 
was  first  associated  with  his  cousins,  R.  E.  and  J.  K.  Graves,  in  the 
local  branch  of  the  State  Bank  of  Iowa.  He  served  for  a  time  in 
the  First  National  Bank  of  that  city,  and  subsequently,  in  1871, 
became  cashier  of  the  Commercial  National  Bank.  This  position 
he  resigned  in  1881  in  order  to  come  to  Chicago  to  be  assistant 
cashier  of  the  Hyde  &  Leather  National  Bank.  In  August,  1882, 
he  accepted  the  position  of  assistant  cashier  in  the  First  National 
Bank.  In  this  capacity  he  displayed  marked  ability,  and  inde- 
fatigably  labored  to  promote  the  interests  of  the  institution.  In 
recognition  of  his  services, he  was  in  i8gi  —  when  already  stricken 
with  his  final  malady  —  promoted  to  be  second  vice-president, 
and  for  sixteen  months  prior  to  his  death  was  carried  with  full  pay 
upon  the  rolls  of  the  bank.  In  August,  1890,  he  first  yielded  to 
the  inroads  of  disease.  During  his  entire  career  he  had  unremit- 
tingly dedicated  himself  to  hard  and  strenuous  labor;  as  the  result 
he  had  completely  worn  out  his  physical  constitution.  Ever  indus- 
trious, and  never  shirking  any  amount  of  toil,  he  was  neverthe- 
less always  most  affable  and  genial.  Upon  his  first  attack  of 
ill  health  he  went,  temporarily  as  he  supposed,  to  the  Sanitarium 
at  Alma,  Michigan.  Here  he  remained  some  months,  and  then, 
his  condition  not  improving,  he  rejoined  the  members  of  his 
family  in  Grand  Rapids,  Michigan,  where  they  were  visiting  rela- 
tives.    There  he  died,  on  December  16,  1891. 

Mr.  Kingman  always  enjoyed  an  excellent  reputation.  At  the 
time  of  his  enforced  retirement  from  business  he  had  the  brightest 
prospects  before  him;  was  blessed  with  a  loving  family,  counted 
numerous  warm  friends,  and  was  held  in  high  esteem  by  all  who 
came  in  contact  with  him.  He  was  prominent  as  a  Universalist, 
a  Knight  Templar,  and  a  member  of  several  clubs. 

A  widow,  Emerette  Randall,  three  daughters,  an  aged  mother, 
and  three  sisters  survived  him. 


Biographical  143 


EDWARD  F.   LAWRENCE 

Edward  F,  Lawrence,  son  of  Benjamin  F,  and  Elizabeth 
Fenelly  Staples  Lawrence,  was  born  at  Groton,  Middlesex  County, 
Massachusetts,  on  October  29,  1835.  His  ancestors  had  resided  in 
this  town  since  1639,  when  John  Lawrence  moved  thither  from 
Charlestown,  Massachusetts,  having  previously  migrated  from 
Wisset,  in  Lancashire,  England.  When  young  Edward  was  only 
two  years  of  age,  the  family  home  was  transferred  to  Belvidere, 
Illinois,  then  in  the  midst  of  the  western  wilderness.  Here, 
among  the  influences  naturally  prevailing  in  pioneer  life,  which 
so  strongly  tend  to  awaken  the  innate  energies  and  active  powers 
of  man,  the  child  grew  up. 

This  period  was  not  lacking  in  opportunities  for  mental  im- 
provement. His  early  tutor  was  Rev.  Arthur  B.  Fuller,  a  brother 
of  the  gifted  Margaret  Fuller  d'Ossoli.  When  twelve  years  of 
age,  the  boy  entered  upon  a  course  in  Lawrence  Academy  at  Gro- 
ton, where  he  attained  exceptional  honors.  Several  times  during 
his  school  career  he  made  the  long  trip  by  stage,  canal,  and 
steamboat  between  his  home  and  the  East.  Then,  in  1850,  when 
only  fifteen  years  of  age,  he  began  active  life  as  a  clerk  in  a  coun- 
try store  at  Belvidere.  Although  his  father  was  then  a  merchant 
in  that  town,  the  lad  was  placed  in  the  employ  of  a  stranger, 
where  work  would  not  be  tempered  by  any  special  privileges. 
After  two  or  three  engagements  in  various  stores  of  the  locality, 
he  was  finally  apprenticed  to  Whitney  &  Fenno,  dry  goods  mer- 
chants at  Boston,  Massachusetts,  who  were  widely  known,  and  en- 
joyed a  large  trade.  With  this  house  he  continued  six  years, 
during  which  interval  he  familiarized  himself  thoroughly  with 
the  different  branches  of  the  business,  not  only  in  the  office  and 
store,  but  likewise  by  traveling  for  a  time  throughout  the  west- 
ern states  in  the  interests  of  his  employer. 

In  1858  young  Lawrence,  then  twenty-three  years  of  age,  se- 
lected Chicago  as  the  place  of  his  permanent  abode.  Coming 
hither  he,  together  with  his  father  and  David  Ballentine,  a  well- 
known  citizen  of  that  time,  opened  a  commission  house.  Upon 
this  occasion  he  likewise  joined  the  Board  of  Trade,  of  which  he 
continued  a  member  until  his  death,  including  a  period  of  very 
nearly  forty  years.  In  the  course  of  his  residence  at  Chicago, 
Mr.  Lawrence  was  associated  in  many  enterprises  of  importance. 
In  early  days — again  with  his  father  and  Mr.  Ballentine — he  was 
part  owner  in  a  salt  mine  at  Saginaw,  Michigan,  and  likewise  es- 
tablished there  the  first  shipping  line  for  the  transportation  of 
lumber  in  large  quantities  upon  the  Great  Lakes.  Subsequently, 
in  1885,  he  became  president  of  the  Brazil  Block  Coal  Company. 


144   The  First  National  Bank  of  Chicago 

His  skillful  management  of  this  corporation  during  the  strike  of 
i8gi,  and  its  successful  issue  from  this  crisis,  under  his  guidance, 
are  to  be  reckoned  among  his  most  noteworthy  achievements. 

Mr.  Lawrence  became,  in  1869,  a  member  of  the  board  of  di- 
rectors of  the  First  National  Bank,  on  which  he  sat  until  his 
demise  in  1898.  For  nearly  twenty-nine  years  he  assiduously  and 
devotedly  served  the  institution.  Among  all  those  who  have  been 
connected  with  it,  he  ranks  one  of  the  foremost  by  reason  of  the 
lengthy  period  of  his  service,  his  strict  attention  to  details,  and  the 
influence  he  exerted  upon  its  affairs.  For  many  years  he  was  a 
member  of  the  discount  committee,  had  an  of^ce  at  the  bank,  and 
daily  spent  considerable  time  in  passing  upon  matters  which  were 
presented  to  him  for  consideration.  In  testifying  to  their  sorrow, 
the  board  of  directors,  after  his  death,  declared  "his  service  as  a 
director  was  made  of  uncommon  value  by  the  excellence  of  his 
business  judgment,  and  the  large  amount  of  time  he  devoted  to 
the  bank,  willingly  and  without  stint.  His  methods  were  ever 
straightforward  and  honorable,  bearing  the  mark  of  his  fine  integ- 
rity and  open  and  generous  character.  He  won  the  confidence  of 
all  who  knew  him  by  deserving  it." 

Mr.  Lawrence  was  also  one  of  the  directors  of  the  Columbian 
Exposition,  being  a  member  of  the  original  board,  and  four  times 
re-elected.  He  likewise  served  as  a  member  of  the  Committee 
on  Ways  and  Means,  and  that  on  Grounds  and  Buildings,  as  well 
as  chairman  of  the  Committee  on  Ceremonies.  In  whatever  enter- 
prise he  was  interested,  he  was  always  selected  as  the  best  fitted 
to  care  for  its  financial  direction  and  supervision ;  and  in  this  depart- 
ment he  was  almost  invariably  successful  in  the  results  which  he 
achieved.  After  i8qi  he  retired  from  his  general  activities,  except 
in  the  case  of  the  First  National  Bank,  over  the  interests  of  which 
he  still  faithfully  watched.  He  also  retained  his  financial  invest- 
ments in  many  industrial  and  mercantile  organizations. 

For  many  years  Mr.  Lawrence  was  a  member  and  an  official 
of  Grace  Episcopal  Church;  he  was  treasurer  of  St.  Mary's  Hos- 
pital for  Women;  likewise  a  member  of  the  Chicago  Historical 
Society;  and  a  governing  member  of  the  Art  Institute.  In  his 
public  and  private  charities  he  was  ever  liberal,  as  well  befitted  a 
man  of  his  kindly  and  benevolent  disposition.  Politically  he  was 
a  Democrat,  but  partisanship  never  deterred  him  from  casting  his 
vote  and  his  influence  for  the  man  whom  he  conscientiously 
believed  best  fitted  for  office. 

Toward  the  close  of  his  life  he  became  an  enthusiastic  devotee 
to  "ye  gentle  sport"  of  fishermen.  In  this  pursuit  he  loved  to 
spend  his  summer  leisure  while  cruising  on  his  private  yacht  upon 
the  Great  Lakes.  During  this  season  his  headquarters  were  at 
Miltona,  Michigan.  On  December  23,  1898,  Mr.  Lawrence  was 
called  to  his  last  reward,  passing  into  the  mists  of  the  future  at 


Biographical  145 


his  home  in  Chicago,  surrounded  by  his  devoted  family  and  by 
many  sorrowing  friends.  His  widow,  Mary  Ballentine  Lawrence — 
the  daughter  of  his  early  business  associate — whom  he  married 
on  May  23,  1861,  and  his  son,  Dwight  Lawrence,  a  lawyer,  sur- 
vived him. 


HENRY  B.  LEWIS 

Henry  Byron  Lewis  was  born  in  February,  1825,  on  a  farm  in 
Madison  County,  New  York.  His  education  was  received  in  the 
public  schools  of  his  native  village,  and  during  one  term  at  the 
Morrisville  Academy.  At  the  age  of  eighteen,  being  obliged  to 
leave  school,  he  began  life  for  himself.  His  first  employment  was 
in  the  office  of  the  IJUcajDaify  Gazette,  where  he  proposed  to  learn 
the  printer's  trade;  but  after  an  experience  of  six  months  he  ac- 
cepted a  more  desirable  position  in  a  store  at  Hamilton,  New  York. 
For  the  next  ten  years  he  was  engaged  in  mercantile  business, 
either  in  the  employ  of  others  or  on  his  own  account. 

Coming  to  Chicago  in  1855,  he  started  as  a  clerk  with  Williams 
&  Avery,  lumber  dealers;  but  at  the  end  of  one  year  formed  a 
partnership  in  the  same  business  with  Walter  Lull.  Anticipating 
the  panic  of  1857,  he  soon  sold  his  interest  to  his  partner,  and  sub- 
sequently established  himself  in  association  with  his  cousin,  A.  M. 
Lewis,  and  a  Mr.  Newell,  in  the  wool  trade  on  Kinzie  street.  About 
the  same  time  he  also  became  a  member  of  the  Board  of  Trade.  In 
i860  he  moved  his  warehouse  and  offices  to  the  corner  of  South 
Water  and  Franklin  streets,  where  he  remained  until  burned  out  by  ■ 
the  great  fire.  After  that  date,  he  engaged  in  real  estate,  his  firm 
being  successively  known  as  Lewis  &  Brooks,  Lewis,  Brooks  & 
Kent,  and  Lewis  &  Carter.  For  the  last  fifteen  years  of  his  life 
he  practically  retired  from  active  business. 

From  1867  to  1869  Mr.  Lewis  was  a  member  of  the  board  of 
directors  of  the  First  National  Bank,  in  which  capacity  he  ren- 
dered most  efficient  service.  It  was  largely  through  his  personal 
influence  that  Lyman  J.  Gage  was  originally  induced  to  accept 
the  position  of  cashier  in  this  institution. 

Until  1867  Mr.  Lewis  resided  on  the  West  Side.  He  then 
moved  to  Englewood,  which  he  named. 

In  politics  Mr.  Lewis  was  a  Republican,  although  in  local  elec- 
tions he  always  supported  those  whom  he  deemed  the  best  qualified, 
regardless  of  their  political  affiliations.  He  served  as  a  mem- 
ber of  the  Hyde  Park  board  of  trustees,  of  the  local  board  of  edu- 
cation, and  of  the  county  board  of  education.  In  religion  he  was 
a  staunch  Universalist,  but  during  the  residence  of  Robert  Collyer, 
the  blacksmith  preacher,  in  Chicago,  was  among  his  most  ardent 
supporters. 


146    The  First  National  Bank  of  Chicago 

Mr.  Lewis  died  on  June  5,  1901,  at  his  residence,  6012  Indiana 
avenue.  On  February  24,  1848,  he  married  at  Eaton,  Madison 
County,  New  York,  Nancy  B.  Houghton,  who  still  survives  him. 
They  had  one  child,  a  daughter,  now  Mrs.  W.  W.  Carter. 


BYRON  RICE 

Byron  Rice,  son  of  Julius  H.  and  Roene  Foster  Rice,  was  born 
at  Swanton  Falls,  Vermont,  on  March  3,  1827.  When  eleven  years 
of  age,  he,  together  with  his  parents,  removed  to  Glens  Falls,  New 
York.  Here  his  father  became  a  leading  merchant  and  citizen. 
After  a  good  academical  education,  and  a  short  period  spent  in 
the  store,  the  youth  obtained  a  clerkship  in  a  large  mercantile  es- 
tablishment at  Brooklyn.  A  brief  visit  to  Glens  Falls  occurred  in 
1848,  and  then,  during  that  autumn,  he,  with  a  sister,  made  a  trip 
to  the  Far  West.  He  traveled  from  Buffalo  to  Milwaukee  by 
steamer,  and  thence  by  stage  to  Lancaster,  Wisconsin,  visiting 
likewise  several  other  places  where  he  had  friends.  At  Lancaster 
he  read  law  for  a  few  months  with  Judge  Barber ;  and  subse- 
quently formed  one  of  a  surveying  party  in  northwestern  Wiscon- 
sin. Immediately  afterward  he  returned  to  Glens  Falls,  where  he 
embarked  in  business  for  himself,  in  connection  with  two  other 
gentlemen.  They  opened  a  general  store,  and  also  had  lumber  in- 
terests on  the  northern  Hudson. 

In  March,  1850,  he  joined  a  party  en  route  to  California,  trav- 
eling via  the  Isthmus  of  Panama  to  San  Francisco.  A  brief  visit 
to  the  mines  convinced  him  that  he  was  not  fitted  for  such  a  rough 
life  ;  so  returning  to  San  Francisco  he  engaged  in  the  business  of 
miners'  supplies.  Later  he  removed  to  Sacramento,  and  during 
July,  185 1,  he  returned  to  the  East  with  a  considerable  sum  as  the 
fruits  of  his  sixteen  months'  experience.  In  spite  of  his  own  de- 
sires, he  yielded  to  the  wishes  of  his  parents  that  he  should  not 
go  back  to  California. 

Early  in  1852,  together  with  others,  he  bought  some  timber- 
land  in  Potter  County,  Pennsylvania,  and  in  southwestern  New 
York  ;  and  then  for  a  few  years  was  engaged  in  promoting  the 
interests  of  the  company  at  Olean,  New  York,  where  its  large  mill 
was  situated.  After  selling  out  his  holdings  in  this  company,  he 
removed  to  Syracuse,  and  there  assisted  in  organizing  works  for 
the  development  of  Solar  coarse  salt.  He  served  as  secretary  of 
the  corporation  then  organized  until  1861,  and  to  the  day  of  his 
death  retained  his  stock  m  it.  He  also  at  this  time  opened  a  flour 
store,  and  had  a  share  in  a  lumberyard. 

At  the  request  of  John  D.  Norton,  of  Syracuse,  and  a  member 
of  the  firm  of  Aiken  &  Norton,  of  Chicago,  Mr.  Rice  came  to  the 


Biographical  147 


last-named  city  in  the  fall  of  i860,  with  the  intention  of  starting  in 
business.  Upon  Mr.  Norton's  death,  soon  thereafter,  he  tempora- 
rily returned  to  his  old  home,  but  in  January,  1861,  finally  settled 
with  his  family  in  Chicago.  He  then  became  a  partner  of  E,  W. 
Densmore  in  the  general  flour  trade,  joined  the  Board  of  Trade, 
and  the  following  year  bought  out  his  partner's  interest. 

In  the  winter  of  1862-63  he  was  one  of  the  most  active  men  in 
the  organization  of  the  First  National  Bank  of  Chicago  ;  was 
elected  a  member  of  the  first  board  of  directors,  and  served  on 
that  body  until  1868,  rendering  meanwhile  most  efficient  and  valu- 
able services  in  the  development  of  the  institution. 

Soon  after  the  foundation  of  the  bank,  Mr.  Rice,  together  with 
his  friend  Webster  Batcheller,  embarked  in  the  wholesale  lumber 
business.  Until  the  end  of  1867  he  devoted  his  entire  energies  to 
the  promotion  of  this  venture,  when,  as  the  result  of  an  attack  of 
typhoid  fever,  superinduced  by  too  close  attention  to  business,  he 
was  obliged  to  retire  from  all  his  enterprises.  At  this  time  he 
likewise  resigned  as  a  director  in  the  bank,  although  he  held  his 
stock  in  it  until  the  day  of  his  decease. 

In  June,  1856,  Mr.  Rice  was  married  to  Emma  L.  Sanford, 
of  Ballston  Spa,  New  York.  For  a  time  after  his  removal  to  Chicago 
he  resided  in  the  city  proper;  but  in  May,  1869,  upon  his  retirement, 
removed  to  Evanston.  In  religion  he  was  a  Presbyterian,  and 
throughout  life  was  exceedingly  philanthropic;  he  was  ever  ready 
to  aid  any  worthy  charity.  During  the  Civil  War  he  contributed 
liberally  to  the  northern  cause,  both  for  the  equipment  of  troops 
and  for  the  hospital  service.  After  the  great  fire  he  gave  freely 
to  relief  work.  He  was  active  as  a  Whig  and  a  Republican,  but 
never  cared  for  public  office. 

For  twenty-one  years  Mr.  Rice  was  an  invalid,  having  suffered 
a  paralytic  stroke  which  affected  the  use  of  his  hands  and  his  power 
of  speech.  This  long  period  of  seclusion  from  the  busy  world  was 
cheered  by  many  warm  personal  attachments.  While  he  enter- 
tained himself  by  reading  —  especially  American  history  and  biog- 
raphy— music,  pictures,  and  flowers  were  his  delight. 

Mr.  Rice  died  at  his  home.  No.  635  University  Place,  Evan- 
ston. Illinois,  on  May  17,  1888,  at  the  age  of  sixty-one  years,  and 
was  buried  at  Graceland.  A  widow  and  four  children  survived  him. 
As  a  man  and  citizen  he  was  highly  esteemed  by  those  who  had 
the  good  fortune  to  know  him,  and  by  them  his  memory  will  long 
be  cherished  with  affection. 


148   The  First  National  Bank  of  Chicago 


CHARLES  J.  SCHMITT 

Charles  J.  Schmitt  was  born  at  Elberfeld,  Germany,  about  1830. 
He  emigrated  to  America  probably  in  1855;  immediately  came 
West,  and  entered  the  employ  of  Hoffmann  &  Gelpke,  German 
bankers  of  this  city.  He  remained  with  them  several  years  until 
the  time  of  their  failure,  when  he  became  connected  with  the  firm 
of  Haskell  &  Barker,  car-builders,  Michigan  City,  Indiana.  In 
1865  he  was  engaged  as  general  book-keeper  in  the  First  National 
Bank,  and  subsequently,  in  1866,  was  promoted  to  be  assistant 
cashier,  which  position  he  held  until  his  decease,  in  1868. 


JOHN  B.  SHERMAN 

John  B.  Sherman  was  born  at  Beekman,  Dutchess  County, 
New  York,  in  January,  1825.  His  early  education  was  received 
in  the  common  schools  of  that  neighborhood,  much  time  during 
his  youth  being  spent  on  the  farm.  When  nineteen  years  of  age 
he  obtained  a  position  as  clerk  in  a  country  store,  where  he  re- 
mained until  1849.  The  gold  fever,  then  prevalent,  attracted  him 
to  California,  his  journey  thither  being  made  by  way  of  Mexico. 
With  peculiar  good  fortune  he  located  and  began  mining  near 
Georgetown  in  the  immediate  vicinity  where  gold  was  first  dis- 
covered. Success  attended  his  efforts,  so  that  after  one  year  he 
returned  with  a  small  competency  to  his  native  town.  He  again 
soon  became  restless;  and  removing,  in  the  autumn  of  1850,  to  Ken- 
dall County,  Illinois,  settled  upon  a  farm  which  he  had  purchased. 
Country  life,  however,  did  not  any  longer  please  him.  He  forth- 
with came  to  Chicago,  and  organizing  the  firm  of  Black  &  Sherman 
engaged  in  the  commission  business.  He  first  rented,  in  Decem- 
ber, 1855,  the  old  Bull's  Head  Stock  Yards  on  West  Madison  street, 
and  subsequently  the  Myrick  Yards  at  Cottage  Grove  avenue  and 
Thirty-ninth  street,  associating  himself  in  the  former  enterprise 
with  D.  K.  Belding,  and  in  the  latter  with  his  brother,  J.  N,  W.  Sher- 
man. There  were  then  four  distinct  cattle  markets  in  Chicago. 
Mr.  Sherman,  with  great  sagacity,  realized  the  inconveniences 
of  this  state  of  affairs,  and  foresaw  the  necessity  either  of  a  regu- 
lar co-operation  or  of  a  consolidation  of  these  varied  interests. 
As  a  result  of  his  activity,  the  Union  Stock  Yards  and  Transit 
Company  of  Chicago  was  incorporated  in  1866.  Prior  to  the  full 
execution  of  this  project,  Mr.  Sherman  for  personal  reasons  re- 
moved to  Poughkeepsie,  New  York.  He  had  scarcely  arrived 
there,  however,  when  upon  the  death  of  F.  E.  Bryant,  in  the  spring 


Biographical  149 


of  1867,  he  was  chosen  general  superintendent  of  the  new  company 
and  returned  to  this  city.  At  a  later  date  he  was  chosen  vice- 
president,  general  manager,  and  director.  His  entire  time  and 
care  were  for  many  years  devoted  to  the  advancement  of  this 
corporation.  Not  only  the  management  but  even  matters  of  the 
most  minute  character  received  attention  from  him.  For  this  latter 
purpose  he  made  daily  trips  throughout  the  yards,  directing  every 
detail  of  their  organization.  They  were  according  to  his  ambition 
to  be  not  merely  the  greatest  but  likewise  the  best  managed  live- 
stock market  in  the  world.  Through  his  efforts,  and  as  a  result 
of  his  activity,  this  end  has  been  fully  achieved. 

In  1863  Mr.  Sherman  was  one  of  the  organizers  of  the  First 
National  Bank,  and  until  1867  served  as  a  member  of  its  board 
of  directors.  He  was  also  quite  active  in  real  estate  transactions. 
As  a  citizen  he  was  devoted  to  all  which  conduced  to  the  public 
welfare.  In  the  improvement  and  beautifying  of  the  parks  and 
boulevards  he  was  ever  foremost.  For  many  years  he  served  as 
a  member  of  the  board  of  South  Park  commissioners,  and  was 
for  some  time  president  of  that  body. 

On  February  25,  1902,  Mr.  Sherman  expired  after  a  brief  ill- 
ness. In  his  death  the  community  lost  a  notable  figure  and  a  promi- 
nent advocate  of  pure  politics.  His  entire  life  was  that  of  a  model 
citizen;  unassuming  in  manner  and  plain  in  his  garb,  he  was 
thoroughly  domestic  in  his  disposition.  A  wife,  a  son,  and  a  daugh- 
ter, Mrs,  D.  H.  Burnham,  survived  him. 


HORACE  M.  SINGER 

Horace  M.  Singer,  the  son  of  John  V.  and  Annie  Collins 
Singer,  was  born  at  Schenectady,  New  York,  on  October  i,  1823. 
When  he  was  only  one  year  of  age,  his  parents  removed  to  Con- 
neaut,  Ashtabula  County,  Ohio,  residing  there  for  the  next  twelve 
years,  at  which  latter  date  they  again  migrated,  arriving  at  Lock- 
port,  Illinois,  on  October  31,  1836.  In  this  last-named  place  they 
had  their  home  during  many  years. 

The  education  of  young  Horace  had  already  been  concluded 
before  his  departure  from  Ohio;  the  frontier  district  school  of  that 
early  day  was  the  only  institution  of  learning  frequented  by  him. 
While  still  a  youth  he  became  attached  to  the  engineering  corps 
of  the  Illinois  and  Michigan  Canal;  was  soon  promoted  to  be  super- 
intendent of  repairs,  and  continued  at  this  occupation  until  1852. 
At  this  time  he,  together  with  Mancel  Talcott,  embarked  on  a  small 
scale  in  the  business  of  stone  quarrying,  manufacturing,  and  deal- 
ing. Their  establishment  and  its  resources  were  steadily  and 
gradually  developed,  until  finally  it  became  one  of  the  principal 


150   The  First  National  Bank  of  Chicago 

stone  companies  in  the  country.  In  January,  1879,  he  was  elected 
a  member  of  the  board  of  directors  of  the  First  National  Bank,  in 
which  capacity  he  served  until  1888.  During  this  period  he  ren- 
dered valuable  and  efficient  service  to  the  institution,  in  which  he 
was  deeply  interested. 

In  every  respect  Mr.  Singer  was  a  public-spirited  citizen. 
Through  his  business  relations,  he  was  naturally  at  the  forefront 
of  the  largest  building  operations  undertaken  in  Chicago.  He  was 
also  more  or  less  interested  in  politics.  A  member  of  the  General 
Assembly  of  the  state  in  1866;  he  sat  as  a  county  commissioner 
in  1872,  and  was  chairman  of  the  building  committee  intrusted, 
after  the  great  fire,  with  the  erection  of  the  new  county  court-house 
on  the  North  Side.  In  religion  he  was  absolutely  undenomina- 
tional. 

Mr.  Singer  married  on  April  6,  1847,  at  Lockport,  Illinois, 
Harriet  A.  Roberts,  and  three  sons  were  born  to  them.  Practically 
retiring  from  business  in  1882,  he  nevertheless  retained  his  interest 
in  the  stone  company  with  which  his  name  was  associated,  and 
likewise  in  several  other  enterprises,  until  the  day  of  his  death.  He 
removed,  in  1892,  to  Pasadena,  California,  where,  establishing  a 
beautiful  home,  he  lived  in  retirement  until  December  28,  1896, 
when  he  was  called  to  his  last  reward.  His  remains  were  brought 
back,  for  burial,  to  Lockport. 


HENRY  R.   SYMONDS 

Henry  R.  Symonds  was  born  on  January  11,  1840,  at  Niagara 
Falls,  New  York.  He  had  the  opportunities  of  a  common-school 
education,  supplemented  by  private  instruction,  until  his  sixteenth 
year,  when  he  accepted  employment  as  an  office  boy  in  a  local 
bank.  Little  by  little  he  worked  his  way  up  to  a  clerkship;  and 
at  nineteen  years  of  age  felt  that  he  was  capable  of  larger  and 
more  remunerative  endeavor.  Seeking  for  some  better  opening, 
he  finally  determined  to  try  his  fortune  in  the  growing  city  of 
Chicago.  Hither  he  came,  and  soon  was  serving  as  teller  in  the 
banking  house  of  Aiken  &  Norton.  Within  a  short  time  he  had 
won  the  confidence  and  good  will  of  Mr.  Aiken,  who,  as  soon 
as  he  had  become  familiar  with  his  capacities,  and  with  a  view  to 
improving  his  position,  advised  him  to  seek  work  elsewhere.  Thus 
it  was  that  young  Symonds,  just  as  he  reached  his  majority,  was 
engaged  as  cashier  by  Mr.  C.  B.  Blair,  who  subsequently  reor- 
ganized his  business  as  the  Merchants'  National  Bank.  In  this 
employment  he  remained  for  eight  years. 

In  1869  he  was  chosen  to  be  assistant  cashier  of  the  First  Na- 
tional Bank,  serving  in  that  capacity  until  1882,  when  he  was  pro- 


Biographical  151 


moted  to  be  cashier,  and  subsequently,  in  i8gi,  to  be  vice-president; 
in  1882  he  was  also  elected  to  the  board  of  directors,  on  which  he 
sat  until  his  decease.  In  the  various  positions  which  he  filled 
during  the  twenty-three  years  of  his  association  with  this  institu- 
tion he  was  invariably  regarded  as  a  man  sound  in  judgment  and 
endowed  with  a  high  degree  of  skill  for  the  administration  of 
financial  affairs.  He  always  devoted  himself  conscientiously  and 
willingly  to  his  daily  tasks;  no  thought  of  any  outside  occupation, 
speculation,  trade  or  political  advancement,  ever  interfered  with 
the  proper  performance  of  duty. 

Mr.  Symonds  was  twice  married,  first  to  Julia  Ackley,  of 
New  York,  who  died  in  1874;  and  subsequently,  in  1876,  to  Char- 
lotte L.  McKay,  of  Chicago.  By  his  first  wife  three  children, 
by  his  last  four,  were  born  to  him.  Long  years  of  toil  in  the 
pursuit  of  his  profession  ultimately  undermined  his  health;  for  a 
long  time  he  struggled  against  tlie  increasing  weakness  of  his 
physical  system.  In  January,  1892,  however,  he  surrendered  to 
the  advice  of  physicians,  and  thereupon  went  to  Jacksonville, 
Florida,  in  search  of  relief;  but  it  was  too  late,  for  on  March  26, 
1892,  surrounded  by  the  members  of  his  family,  he  breathed  his 
last.  Of  him,  and  as  his  memorial,  his  associate  directors  in  the 
First  National  Bank  truly  declared  that:  "  His  clear  comprehen- 
sion of  the  great  trust  reposed  in  him,  his  earnest  application  to 
duty,  his  scrupulous  regard  for  the  interests  he  represented, 
his  prudence,  fortitude,  and  courage,  made  his  official  life  most 
effective  and  valuable." 


MANGEL  TALCOTT 

Mancel  Talcott,  the  son  of  Mancel  and  Betsy  Talcott,  was 
born  October  12,  1817,  at  Rome,  Oneida  County,  New  York.  He 
acquired  an  ordinary  school  education,  which  was  by  necessity 
cut  short,  and  then  for  a  few  years  engaged  in  farming.  In  1833  he 
started  westward  ;  coming  by  boat  to  Detroit,  he  tramped  across 
Michigan,  and  finally  arrived  at  Park  Ridge,  subsequently  part  of 
Jefferson — near  the  future  city  of  Chicago.  Determined  to  settle 
here  for  life,  he  married  Mary  H.  Otis,  on  October  25,1841,  and  re- 
sumed the  occupation  of  farming  for  a  livelihood.  The  California 
gold  fever  attacked  him  in  1849,  and  he  forthwith  worked  his  way 
across  the  western  half  of  his  continent.  Somewhat  disappointed, 
but  still  with  unabated  energy,  he  returned  to  Chicago  three  years 
later.  This  expedition  seems  to  liave  been  the  turning-point  in 
his  career,  for  upon  arriving  once  more  on  the  shores  of  Lake 
Michigan,  he  concluded  to  be  something  more  than  a  farmer. 
Chance  gave  him  the  opportunity  to  enter  the  employment  of  the 


152   The  First  National  Bank  of  Chicago 

Illinois  &  Michigan  Canal  Company,  in  which  service  he  made 
the  acquaintance  of  Horace  M.  Singer,  like  himself  engaged  at 
hard  labor.  The  friendship  between  these  two  men  gradually 
ripened,  so  that  within  a  few  years  they  decided  to  join  their 
forces.  Thence  originated,  in  1854,  the  copartnership  in  the  stone 
business,  which  for  many  long  years  has  been  known  as  the  Singer 
&  Talcott  Stone  Company.  Mr,  Talcott  thus  found  his  chief  oc- 
cupation in  life,  although  he  was  interested  in  several  other  im- 
portant enterprises.  In  1867  he  was  chosen  a  director  of  the  First 
National  Bank,  in  which  capacity  he  served  until  1878.  He  was 
also  president  of  the  Union  Stock  Yards  National  Bank  ;  presi- 
dent of  the  Excelsior  Stone  Company,  and  a  large  stockholder  in 
the  West  and  South  Division  Street  Railway  Companies. 

A  strong  Republican  in  politics,  Mr.  Talcott  was  nevertheless 
disposed  to  be  independent ;  locally  he  filled  several  important 
posts.  In  1863-1864,  and  again  in  1865-1867,  he  served  as  alder- 
man; in  November,  1871,  was  chosen  one  of  the  first  board  of 
county  commissioners,  and  on  December  14,  1871,  was  elected 
by  that  body  a  member  of  the  police  board,  of  which  he  at  once 
became  president,  holding  that  position  until  1872.  Frequently  he 
was  named  as  a  prominent  candidate  for  the  mayoralty. 

In  religion,  as  in  business  and  politics,  he  was  straightforward, 
and  ever  ready  to  do  his  part.     By  creed  he  was  a  Universalist. 

His  frank  method  of  speech  and  action  won  for  him  a  unique 
reputation  ;  furthermore,  his  striking  personality  of  figure  seemed 
to  augment  his  originality.  When  he  died,  on  June  5,  1878,  he  was 
mourned  by  many  thousands  as  a  good  citizen  and  faithful  friend. 


DANIEL  THOMPSON 

Daniel  Thompson,  son  of  Daniel  and  Deborah  Fitch  Thomp- 
son, was  born  at  Saccarappa,  in  the  town  of  Westbrook,  Maine, 
on  June  i,  1824.  In  early  childhood  he  lost  both  parents.  After 
some  primary  training  in  local  schools,  he  was  sent  by  friends  to 
New  York  City,  where  he  prepared  for  college.  In  1842  he  gradu- 
ated as  a  civil  engineer  from  Norwich  University,  Norwich,  Con- 
necticut. Immediately  afterward  he  started  on  a  whaling  voyage, 
which  lasted  two  years.  Scarcely  had  he  returned  from  this  ad- 
venture when  his  disposition  for  travel  caused  him  to  migrate  to 
the  West.  After  roving  for  some  time,  he  finally  settled  at  Min- 
eral Point,  Wisconsin,  where  he  obtained  employment  as  book- 
keeper in  a  bank,  and  later  as  superintendent  of  a  shot  tower. 
Subsequently,  in  1846-1847,  he  removed  to  Pekin,  Illinois,  engaging 
there  in  a  mercantile  and  commission  business,  and  likewise  be- 
coming interested  in   pork-packing.     After  seven  years  in  this 


Biographical  153 


town,  lie  transferred  his  residence  to  Chicago,  and  at  once  entered 
the  grain  elevator  business  with  Flint,  Wheeler  &  Co.  Later 
the  firm  became  Flint  &  Thompson,  and  then  Flint,  Odell  &  Co. 
It  owned  at  first,  and  subsequently  controlled,  the  Rock  Island 
elevators,  on  the  south  branch,  just  south  of  Twelfth  Street.  For 
a  number  of  years  Flint  &  Thompson  were  also  pork-packers. 

During  his  residence  in  Chicago  Mr.  Thompson  was  identified 
with  many  other  enterprises.  He  was  a  director  in  the  Union 
National  Bank  ;  likewise,  from  1869  to  1871,  in  the  First  National 
Bank;  and  in  the  Chicago  City  Street  Railway.  In  the  latter  cor- 
poration, together  with  Samuel  M.  Nickerson,  he  owned  for 
many  years  a  controlling  interest,  and  also  served  as  superintend- 
ent of  the  road.  From  1854  to  1882  he  was  a  member  of  the  Chi- 
cago Board  of  Trade,  but  although  active  on  Change,  was  never 
known  to  speculate. 

In  1880,  his  health  warning  him  that  he  must  seek  another 
climate,  he  removed  from  Chicago  to  Louisiana,  there  purchasing 
Calumet  Plantation,  on  Bayou  Teche,  where  he  passed  the  remain- 
der of  his  life.  During  sixteen  years  he  devoted  himself  to  the 
planting  and  the  manufacture  of  sugar.  Together  with  his 
son,  Wibray  Thompson,  he  also  engaged  in  scientific  experimenta- 
tion. The  fruits  of  his  labors  have  been  frequently  published  in 
the  bulletins  of  the  chemical  division  of  the  United  States  Depart- 
ment of  Agriculture,  in  scientific  journals,  in  trade  papers,  and 
elsewhere.  He  long  was  distinguished  as  one  of  the  most  pro- 
gressive, scientific,  and  best  equipped  planters  and  manufacturers. 
The  Calumet  Plantation,  including  some  6,000  acres,  became 
famous  throughout  the  world.  Mr.  Thompson  was  especially  in 
advance  of  his  competitors  in  the  employment  of  fertilizers,  in  the 
chemical  and  physical  investigations  of  his  laboratory,  and  in 
scientific  research.  Practical  results,  which  previously  had  been 
scouted  as  absurd,  were  fully  realized  by  him.  In  the  increase  of 
the  quantity  of  sugar  produced  from  a  certain  extent  of  land,  or 
from  a  given  number  of  plants,  his  achievements  were  enormous. 
In  the  mechanical  and  financial  organization  of  his  business  he 
also  attained  great  success.  Under  his  administration  the  pro- 
duct of  a  ton  of  cane  was  increased  from  an  average  of  one  hundred 
to  two  hundred  pounds  of  refined  sugar. 

While  residing  in  Louisiana  he  became  a  member  of  the  New 
Orleans  Board  of  Trade,  the  New  Orleans  Sugar  Exchange  and 
many  other  southern  commercial  organizations. 

Outside  of  his  business  career,  Mr.  Thompson  also  achieved 
high  recognition  in  many  departments.  During  his  residence  in 
Chicago  he  became  a  charter  and  life  member  of  the  Chicago 
Audubon  Club,  a  life  member  of  the  Chicago  Academy  of  Sciences, 
and  of  the  Chicago  Historical  Society,  and  was  also  associated  with 
the  Art  Institute.    With  J.  Y.   Scammon  he  was  identified  with 


154   The  First  National  Bank  of  Chicago 

almost  every  public  enterprise  undertaken  in  Chicago  between 
1865  and  1875.  He  was  especially  interested  in  the  purchase  and 
erection  of  the  telescope  and  observatory  originally  belonging  to 
the  old  Chicago  University.  During  his  later  years  in  Louisiana  he 
never  relaxed  his  interest  in  such  matters,  but  was  here  likewise 
identified  with  numerous  scientific,  agricultural,  and  art  associations. 
Throughout  life  he  was  a  devotee  of  horticulture  and  agriculture; 
took  great  pleasure  in  all  things  beautiful  in  nature,  and  was  also 
an  admirer  of  animals.  At  one  time  he  kept  a  small  stable  of  fine 
horses,  including  many  noted  trotters  of  the  day;  and  was  also 
president  of  the  Chicago  Trotting  Park  Association,  the  prede- 
cessor of  Washington  Park.  He  was  naturally  a  hunter,  fisherman, 
and  sailor.  He  sailed  some  of  his  craft  in  the  first  yacht  races  off 
the  harbor  of  Chicago. 

During  his  life  he  traveled  widely,  and  wherever  he  went  made 
hosts  of  friends,  whom  he  counted  in  every  community.  Although 
in  his  charities  peculiarly  modest,  he  was  a  liberal  subscriber  to 
many  philanthropic  objects.  The  Home  for  the  Friendless  and  the 
Old  Ladies'  Home  were  particularly  favored  by  him.  In  religion  a 
Unitarian,  he  was  broadly  tolerant  in  all  matters  of  creed.  He  re- 
fused all  public  trusts,  and  so  great  was  his  antipathy  against  such 
activity  that  he  even  deterred  his  son  from  entering  political  life. 
In  the  business  world  he  accepted  few  positions  in  which  he  was 
obliged  to  handle  other  people's  affairs. 

In  185 1  Mr.  Thompson  married  Georgine  Urquahart  Wibray, 
of  New  York  City,  by  whom  he  had  two  sons,  only  one  of  whom, 
however,  reached  manhood.  It  is  he,  Mr.  Wibray  J.  Thompson, 
who  was  so  long  associated  with  his  father,  and  who  ultimately 
succeeded  to  his  affairs. 

After  having  passed  more  than  four  years  as  an  invalid  from  a 
stroke  of  apoplexy,  which  he  suffered  March  11,  i8g6,  Mr.  Thomp- 
son died  at  his  home  on  Calumet  Plantation,  Bayou  Teche,  Lou- 
isiana, on  May  8,  1900.  His  remains  were  buried  at  Graceland 
Cemetery,  Chicago. 


GEORGE  WEBSTER 

George  Webster,  son  of  Eliphalet  K.  and  Harriet  Slade  Web- 
ster, was  born  at  Gilsum,  Cheshire  County,  New  Hampshire,  on 
April  24,  1824.  After  completing  a  high-school  course  at  Thetford, 
Vermont,  he  followed  the  avocation  of  teacher  in  his  native  state 
until  his  twenty-first  year.  Upon  coming  of  age  he  started  a 
general  store  at  Alstead,  New  Hampshire,  but  after  three  years  of 
varied  fortune  his  establishment  was  destroyed  by  fire.  He  then 
engaged  in  the  retail  dry-goods  business  at  Boston,  Massachusetts, 


Biographical  155 


until  1853,  when  he  sold  out,  and  moved  to  Toledo,  Ohio.  Here  he 
began  to  contract  for  the  building  of  railways,  but  soon  accepted 
an  offer  of  employment  from  the  Lake  Shore  &  Michigan  South- 
ern Company.  For  two  years  he  continued  in  this  occupation, 
meanwhile  directing  the  construction  of  the  line  into  Toledo.  In 
1855  he  came  to  Chicago,  and  together  with  Daniel  Baxter 
opened  a  produce  commission  house,  under  the  name  of  Webster 
&  Baxter,  on  South  Water  street.  The  establishment  was  gradu- 
ally transformed  into  a  grain  business,  and  likewise  at  one  time 
handled  large  quantities  of  dressed  hogs.  When  the  Chicago 
Board  of  Trade  was  incorporated  Mr.  Webster  became  one  of  its 
charter  members,  paying  for  his  admission  fee,  as  he  frequently 
afterwards  recounted,  the  sum  of  five  dollars.  During  the  Civil 
War  his  firm  was  awarded  the  contract  of  supplying  the  forage  for 
the  Army  of  the  Potomac.  Until  1891  Mr.  Webster  continued  a 
member  of  the  Board  of  Trade,  during  which  time  he  sat  upon 
several  occasions  as  a  member  of  its  directory,  and  attained  a 
prominent  and  influential  position. 

Soon  after  the  great  fire  the  copartnership  existing  with  Daniel 
Baxter  was  dissolved,  and  thenceforward  the  business  remained 
under  the  exclusive  control  of  Mr.  Webster,  until  1885,  when  his 
son,  George  W.  Webster,  became  associated  with  him  as  a  partner. 

From  1867  to  1870  Mr.  Webster  served  as  a  member  of  the 
board  of  directors  of  the  First  National  Bank.  During  his  term 
he  was  assiduous  in  his  devotion  to  the  interests  of  the  institution, 
and  it  was  largely  through  his  personal  influence  and  persuasion 
that  Lyman  J.  Gage  was  in  1868  selected  for  the  post  of  cashier. 
He  was  also  for  some  years  a  director  of  the  Union  Stock  Yards 
National  Bank. 

Prior  to  the  fire  Mr.  Webster  had  made  large  investments  in 
real  estate,  and  by  this  calamity  suffered  severe  losses.  Through- 
out life,  however,  he  was  chiefly  devoted  to  his  immediate  business. 
He  never  took  any  special  part  in  politics,  and  was  not  interested 
in  any  outside  lines  of  endeavor. 

In  early  life,  while  residing  in  New  Hampshire,  he  married 
Rebecca  A.  Brooks,  who,  with  two  sons,  survived  him.  Mr.  Web- 
ster died  at  his  residence,  314  Belden  avenue,  in  the  city  of 
Chicago,  on  February  22,  1893. 


156    The  First  National  Bank  of  Chicago 


HENRY  M.   WILMARTH 

Henry  M.Wilmarth  was  born  at  Newport,  New  Hampshire, 
on  January  25,  1836.  By  ancestry  thoroughly  puritanical  in  be- 
lief and  character,  the  boy  grew  up  under  the  influence  of  high 
and  rigorous  ideals,  while  his  education  was  limited  to  such  facili- 
ties as  his  native  place  afforded.  Then  he  became,  for  a  brief 
period,  the  aid  and  assistant  of  his  father,  who  was  both  farmer 
and  manufacturer. 

When  twenty  years  of  age,  he  struck  out  for  himself,  and  push- 
ing westward  as  far  as  Chicago  settled  in  this  strange  city.  Anxious 
to  earn  an  honest  living,  he  gladly  embraced  the  offer  of  employ- 
ment in  the  gas-fitting  establishment  of  Gerould  Brothers,  then 
a  prominent  firm  in  that  line  of  business.  When  two  years  after- 
wards both  partners  died,  Mr.  Wilmarth  was  selected  to  admin- 
ister their  affairs,  and  later  became  sole  proprietor  of  the  house. 
As  H.  M.  Wilmarth  &  Co.,  a  partnership  subsequently  formed 
between  himself  and  his  brother,  it  built  up  a  lucrative  business 
and  a  wide  reputation.  Close  application  to  business,  and  assiduity 
in  every  undertaking  rapidly  brought  their  reward.  In  1874  Mr.  Wil- 
marth was  elected  a  director  of  the  P'irst  National  Bank,  and  for  the 
next  eleven  years,  until  the  day  of  his  death,  devoted  much  time, 
thought,  and  care  to  the  upbuilding  of  this  institution.  His  only 
political  service  was  as  alderman  from  the  old  Fourth  Ward  in 
1865-1866,  for  by  disposition  he  was  adverse  to  public  life.  In  religion 
he  was  independent  and  broad-spirited ;  for  many  years  he  regularly 
attended  Professor  Swing's  church.  As  a  citizen  and  man  lie  was 
well  known  in  the  community  where  he  made  his  home.  A  mem- 
ber of  several  clubs,  however  reticent  in  manner  toward  strangers, 
he  was  with  his  intimate  friends  most  genial,  cordial,  and  cheerful. 
Mr.  Wilmarth  married  on  May  21, 1861,  Mary  J.  Hawes,  of  New  Bed- 
ford, Massachusetts,  by  whom  he  had  two  daughters.  On  Febru- 
ary 27,  1886,  after  a  brief  illness,  he  died  of  a  paralytic  stroke. 


II 

BIOGRAPHIES  OF  PERSONS  STILL  LIVING, 
AT  ONE  TIME  ASSOCIATED  WITH  THE 
BANK,  BUT  WHOSE  CONNECTION  WITH 
THE  INSTITUTION   HAS  BEEN  SEVERED 

BENJAMIN  F.  ALLEN 

Benjamin  F.  Allen,  son  of  John  and  Jane  Allen,  was  born  at 
Salem,  Indiana,  on  April  27,  1829,  and  was  educated  at  the  public 
schools.  When  seventeen  years  of  age  he  joined  the  army,  which 
was  then  being  organized  to  invade  Mexico.  He  participated  in 
all  the  battles  of  the  Mexican  War ;  was  present  at  the  taking 
of  Vera  Cruz  and  at  the  capture  of  the  City  of  Mexico,  remaining 
in  the  latter  place  until  its  evacuation  by  the  American  troops.  He 
then  returned  to  Franklin,  Indiana,  and  subsequently,  in  the 
autumn  of  1848,  removing  to  Iowa,  settled  at  the  point  known  as 
Fort  Des  Moines.  Here  he  first  engaged  in  the  establishment  of 
a  country  store. 

As  Mr.  Allen  accumulated  some  fortune,  he  gradually  became 
interested  in  banking.  The  Bank  of  Nebraska,  officially  situated 
at  Omaha,  but  transacting  the  principal  part  of  its  affairs  in  Iowa, 
passed  under  his  control  ;  with  good  credit  among  financiers  and 
capitalists,  he  was  able  by  means  of  his  indorsement  to  float  the 
notes  issued  by  this  institution.  The  many  hundreds  of  these  bills 
were  ultimately  redeemed  by  Mr.  Allen. 

On  January  i,  1859,  under  his  inspiration,  the  State  Bank  of 
Iowa  was  organized.  On  its  directorate  Mr.  Allen  served  as  a 
member.  He  likewise  obtained  control  of  several  other  banks,  in 
which  he  was  either  president  or  at  least  the  controlling  factor. 
In  1867  Mr.  Allen  was  appointed  receiver  for  the  Mississippi  and 
Missouri  Railroad  Company,  which  proved  a  source  of  great  ad- 
vantage to  him.  About  the  same  time  he  opened  a  New  York 
house,  under  the  name  of  Allen,  Stephens  &  Co. 

In  1871  Mr.  Allen  was  elected  a  member  of  the  board  of  di- 
rectors of  the  First  National  Bank  of  Chicago,  in  which  capacity 
he  served  until  1874.  But  his  principal  activity  in  this  city  was  in 
connection  with  another  institution.  On  May  29,  1873,  he  bought 
the  controlling  interest  in  the  Cook  County  National  Bank,  of 
which,  on  June  3,  1873,  he  became  president.    Although  the  panic 

157 


158    The  First  National  Bank  of  Chicago 

of  that  year  soon  followed,  the  institution  was,  for  the  moment, 
successful  in  weathering  the  storm,  but  was  so  seriously  affected 
that  it  with  difficulty  continued  business  until  the  beginning  of 
1875.  On  January  i8th  of  that  year  it  went  into  liquidation.  Mr. 
Allen  surrendered  all  of  his  property  for  the  benefit  of  his  credi- 
tors, and  made  every  effort  to  satisfy,  as  far  as  he  could,  the 
claims  which  they  had  upon  him. 

During  the  time  that  Mr.  Allen  was  a  resident  of  Iowa,  he 
served  as  a  state  senator  for  four  years. 

He  married  Musie  A.  West,  of  Des  Moines,  and  erected  there 
a  magnificent  residence.  Subsequently,  when  he  became  so 
largely  associated  with  Chicago,  he  transferred  his  home  to  this 
city.  After  the  loss  of  his  fortune,  Mr.  Allen  removed  to  Los  An- 
geles, California,  where  he  has  since  then  lived.  For  four  years 
he  served  as  special  agent  of  the  general  land  office  at  this 
place.  He  is  now  holding  the  position  of  forest  superintendent 
of  reservations  in  the  state  of  California. 

In  the  evening  of  an  eventful  life,  Mr.  Allen  still  retains  his 
old  cheerful  disposition. 


AUGUSTUS  A.  CARPENTER 

Augustus  A.  Carpenter,  the  son  of  Alanson  and  Gulia  Elma 
Nichols  Carpenter,  was  born  on  June  8,  1825,  in  Franklin  County, 
New  York.  He  attended  the  common  schools  of  his  locality, 
but  owing  to  the  straitened  circumstances  of  his  parents,  being 
obliged  to  abandon  school,  he  left  home  at  an  early  age.  The 
reports  of  the  gold  discoveries  in  California  were  so  attractive 
that  he  decided  to  make  his  way  thither;  undeterred  by  the  great 
risks  which  he  might  encounter,  he  sailed  via  the  Isthmus  of 
Panama.  Upon  his  arrival  at  the  gold-fields,  he  and  his  brother, 
who  had  already  preceded  him,  joined  in  mining  and  trading. 
Having  amassed  considerable  capital,  he  left  California  in  1855, 
returned  East,  and  finally  established  himself  in  the  dry  goods 
and  lumber  business  in  Monroe  County,  Wisconsin.  This  venture 
proved  successful,  and  Mr.  Carpenter  likewise  more  and  more 
believed  that  there  was  to  be  great  wealth  gained  in  the  lumber 
trade.  Firm  in  this  conviction,  he  associated  with  himself  Abner 
Kirby  of  Milwaukee,  S.  M.  Stephenson  of  Menominee,  Michigan, 
and  W.  O.  Carpenter  of  Chicago,  in  the  formation  of  the  well- 
known  lumber  firm  of  Kirby,  Carpenter  &  Co.,  subsequently 
named  the  Kirby-Carpenter  Company.  Of  this  business  Mr. 
Carpenter  has  continuously  acted  as  manager,  until  now  for  many 
years  past  he  has  enjoyed  the  reputation  of  being  the  foremost 
lumberman  in  Chicago.     He  was  also  for  ten   or  twelve  years 


Biographical  159 


president  of  the  Lumberman's  Mining  Company,  with  mines 
located  near  Iron  Mountain,  Michigan.  He  is  Hkewise  at  the 
present  time  vice-president  of  the  South  Side  Elevated  Railway 
Company,  a  director  of  the  Metropolitan  National  Bank  of  Chi- 
cago, and  has  been  president  of  the  Lumberman's  National  Bank 
of  Menominee,  Michigan.  From  1883  to  1900  he  served  as  a 
member  of  the  board  of  directors  of  the  First  National  Bank  of 
Chicago,  in  which  capacity  he  was  a  prudent  counselor  and  a 
valuable  friend  to  that  institution. 

Mr.  Carpenter  has  resided  in  Chicago  since  1864,  and  has 
always  shown  himself  to  be  a  public-spirited  and  useful  citizen. 
A  firm  Republican,  he  is  one  of  the  foremost  advocates  of  reform 
in  municipal  scovernment.  The  election  law  of  1885  was  chiefly 
due  to  his  efforts.  He  is  a  member  of  the  Commercial  Club,  of 
which  he  has  served  as  president,  and  is  likewise  president  of  the 
Citizens'  Association.  He  has  long  been  interested  in  charitable 
institutions,  but  owing  to  Mrs.  Carpenter's  activity  in  this  line,  his 
name  seldom  appears  in  that  connection.  He  was  also  for  a  num- 
ber of  years  a  trustee  of  the  Training  School  for  Nurses.  Of  firm 
character,  clear  insight,  and  conscientiously  fulfilling  his  obliga- 
tions, he  is,  above  all,  a  master  mind  in  his  particular  line  of  busi- 
ness; and  yet  upon  every  occasion  he  has  found  time  to  contribute 
his  assistance  to  the  solution  of  the  pressing  questions  of  society 
and  government. 


CHARLES  H.  CONOVER 

Charles  H.  Conover  was  born  in  eastern  Pennsylvania  on  July 
12,  1847.  I"  his  youth  he  received  a  common  and  high  school  edu- 
cation. When  twelve  years  of  age,  together  with  his  parents,  he 
removed  to  Buffalo,  New  York.  At  the  outbreak  of  the  Civil  War,  he 
enlisted  in  the  Home  Guards,  organized  for  the  defense  of  the 
frontier  against  the  possibility  of  an  invasion  from  Canada.  In 
1865  he  began  active  life  in  the  employ  of  a  hardware  house  in  the 
city  where  he  was  then  residing.  Six  years  later,  in  1871,  he  came 
to  Chicago,  and  almost  immediately  secured  a  position  with  the 
firm  of  Hibbard,  Spencer,  Bartlett  &  Co.  Little  by  little  he  won 
promotion,  so  that  when,  in  i88i,  the  present  corporation  was  or- 
ganized, he  became  one  of  the  directors,  and  subsequently  its 
secretary.  In  this  capacity,  and  as  general  manager,  he  still 
serves. 

From  1900  to  1902  Mr.  Conover  was  a  director  of  the  First 
National  Bank. 


i6o  The  First  National  Bank  of  Chicago 


JAMES  C.  FARGO 

James  C.  Fargo,  son  of  William  C.  and  Tacy  Strong  Fargo,  was 
born  at  Watervale,  Onondaga  County,  New  York,  on  May  5,  1829. 
His  ancestors  had  migrated  about  1680  from  Wales,  and  had  settled 
at  New  London,  Connecticut.  He  was  educated  at  the  public 
school  of  his  native  town.  When  fifteen  years  of  age  he  went 
to  Buffalo,  where  he  obtained  employment  in  the  office  of  his 
brother,  William  G.  Fargo,  who  with  Henry  Wells  and  Daniel 
Dunning,  had  just  inaugurated  the  express  business.  The  firm 
was  known  as  Wells  &  Co.,  and  the  line  then  extended  from  Buffalo 
to  Detroit.  Another  company,  called  Livingston,  Wells  &  Pomeroy, 
owned  the  line  from  Albany  to  Buffalo.  Here  the  subject  of  the 
present  sketch  performed  various  petty  duties,  such  as  keeping 
the  office  in  order,  running  errands,  and  delivering  packages. 
He  accompanied  his  brother  in  the  spring  of  1847  to  Detroit,  and 
one  year  later  was  placed  in  partial  control  of  this  office.  Within 
a  short  time  he  was  promoted  to  be  manager  of  the  business  in 
that  city,  and  soon  became  superintendent  for  the  state  of  Michigan. 
In  1855  he  removed  to  Chicago,  and  was  appointed  local  agent. 
Meanwhile  the  transactions  of  the  company  were  gradually  expand- 
ing, its  name  had  been  changed  to  that  of  the  American  Express 
Company,  and  the  necessity  for  more  men  of  ability  and  breadth 
of  view  was  constantly  increasing.  Mr.  Fargo  was  in  due  time 
made  superintendent  of  the  northwestern  division.  While  resid- 
ing in  Chicago,  he  became  in  1863  one  of  the  founders  of  the  First 
National  Bank,  upon  the  first  directorate  of  which  he  was  chosen. 
When  the  organization  of  the  board  was  effected,  he  was  moreover 
elected  vice-president.  Unfortunately  his  other  varied  duties  caused 
him  to  decide  that  he  could  not  spare  the  time  necessary  for  the 
performance  of  the  tasks  incidental  to  this  position;  he  therefore 
soon  resigned,  and  entirely  withdrew  from  the  management. 

In  January,  1867,  he  accepted  the  position  of  general  super- 
intendent of  the  American  Express  Company,  and  was  elected 
a  director  of  the  corporation  of  Wells,  Fargo  &  Co.  The  assumption 
of  these  new  functions  necessitated  his  removal  to  New  York  City. 
Here  for  five  years  he  labored  indefatigably  and  with  extraordinary 
success  in  the  development  of  the  business  confided  to  his  care. 
Owing  to  these  unremitting  exertions  his  health  failed  in  1872; 
he  then  went  to  Europe  with  his  family  for  some  eighteen  months. 
Returning  in  1874  to  New  York,  he  again  resumed  his  numerous 
activities,  which  he  still  continues  to  discharge.  Since  1859  he  has 
been  a  director  in  the  American  Express  Company;  and  in  1881, 
after  the  decease  of  his  brother,  William  G.  Fargo,  was  promoted 
to  the  presidency,  which  position  he  now  fills. 


Biographical  i6i 


While  his  entire  business  h'fe  has  been  devoted  to  the  affairs 
of  the  American  Express  Company,  Mr.  Fargo  has  other  important 
interests  wherein  he  displays  liis  customary  activity  and  energy. 
The  Merchants'  Dispatch  Transportation  Company  was  reorgan- 
ized by  him  in  1871,  and  since  then  he  has  been  its  president. 
Furthermore  he  is  a  director  in  the  National  Express  Company, 
in  the  United  States  Express  Company,  in  the  Chicago  &  North- 
Western  Railroad  Co.,  and  in  the  Winona  &  St.  Peter  Land  Co. 

In  other  fields  of  endeavor  Mr.  Fargo  is  also  well  known. 
During  his  residence  in  Chicago  he  was  a  vestryman  of  Trinity 
Protestant  Episcopal  Church.  After  his  removal  to  New  York  he 
attended  St.  Thomas'  Church,  of  which  he  has  been  vestryman 
and  treasurer  for  more  than  twenty-five  years.  He  is  a  member 
of  the  church  and  city  clubs  of  New  York,  also  of  the  American 
Society  for  the  Prevention  of  Cruelty  to  Animals,  the  American 
Geographical  Society,  the  New  York  Genealogical  and  Biographical 
Society,  the  American  Museum  of  Natural  History,  the  New  York 
Zoological  Society,  and  the  Metropolitan  Museum  of  Art.  On 
December  15,  1853,  Mr.  Fargo  married  Fannie  P.Stuart,  daughter 
of  Colonel  John  Stuart,  of  Battle  Creek,  Michigan;  she  died  on 
August  31,  1896.  This  union  was  blessed  with  four  children,  two 
sons  and  two  daughters;  both  the  latter  are  dead;  tlie  former 
have  long  been  engaged  in  the  same  business  as  their  father. 


CORNELIUS  R.  FIELD 

Cornelius  Robbins  Field,  son  of  Lucius  and  Lucia  Hubbard 
Field,  was  born  at  Troy,  New  York,  on  February  29,  1836,  and  is 
a  member  of  the  distinguished  family  of  the  same  name.  His 
parents  were  of  moderate  means.  After  a  few  years  spent  in  the 
common  schools  of  his  native  town,  he,  when  just  ten  years  of 
age,  obtained  employment  as  errand  boy  in  the  office  of  the  New 
York  Courier  and  Enquirer,  then  under  the  editorship  of  James 
Watson  Webb.  Two  years  later,  in  1848,  together  with  his  parents, 
he  migrated  to  Janesville,  Wisconsin.  Here,  during  the  next  five 
years,  he  served  as  a  clerk  in  a  country  store.  At  the  age  of  seven- 
teen he  transferred  his  activities  to  Chicago.  LTpon  arriving  in 
this  city,  he  secured  a  clerical  position  in  the  Michigan  Soutliern 
Railroad  office,  and  subsequently  was  employed  in  various  capaci- 
ties by  the  Illinois  Central,  New  York  and  Erie,  and  the  New 
York  Central  Railroad  companies.  From  1857  to  i860,  he  was 
connected  with  the  management  of  the  City  Hotel,  then  one  of  the 
leading  houses  in  Chicago.  Again  for  two  years  he  cast  his  for- 
tunes with  the  railroad  business.  Upon  the  organization  of  the 
internal  revenue  system,  he  was  appointed  assistant  assessor  for 


i62  The  First  National  Bank  of  Chicago 

the  First  District  of  Illinois.  He  was  soon  promoted  to  be  chief 
clerk,  and  in  fact  developed  the  methods  of  procedure,  and  most 
of  the  details  of  the  management  of  the  office  in  which  he  was 
employed. 

In  1866,  the  management  of  the  First  National  Bank  elected 
him  cashier  of  the  institution.  For  two  years  he  filled  this  position 
with  credit.  Desirous  then  of  extending  his  energies,  he  formed 
a  partnership  with  George  S.  King  and  Moses  Turner,  for  the  real 
estate  and  stock  brokerage  business,  under  the  style  of  Field, 
King  &  Co.;  after  the  expiration  of  this  arrangement,  in  1871,  Mr. 
Field  continued  its  affairs  as  C.  R.  Field  &  Co.,  devoting  himself 
entirely  to  the  line  of  mortgages,  loans,  and  securities.  In  1880, 
severing  his  connection  with  Chicago,  he  returned  to  reside  in 
Brooklyn,  and  until  1898  was  engaged  in  brokerage  in  New  York 
City.  Since  the  last-mentioned  date,  he  has  been  the  cashier  of  a 
large  manufacturing  concern. 

Mr.  Field  was  married  on  March  12,  1861,  to  Sarah  E.  Har- 
vey, of  Chicago.     Five  children  have  been  born  to  them. 


LYMAN  J.   GAGE 

Modern  finance  may  well  be  classified  among  the  fine  arts; 
those  who  would  attain  success  in  its  domain  must  possess  a  clear 
eye,  a  delicate  touch,  a  knowledge  of  fundamental  principles,  and  an 
appreciation  of  remote  effects,  combined  with  wonderful  prudence 
and  an  unflagging  energy.  To  have  risen  from  the  ranks  to  the  lead- 
ership in  any  department  of  activity  is  always  in  itself  a  recognized 
proof  of  the  existence  of  the  requisite  qualifications  in  the  indi- 
vidual; how  much  greater  the  distinction  to  have  achieved  renown 
in  a  profession  which  few  master  because  of  the  manifold  charac- 
teristics essential  to  proficiency. 

Lyman  J.  Gage  is  of  New  England  stock;  both  his  parents 
were  born  in  the  state  of  New  York;  and  it  was  at  the  village  of 
DeRuyter,  in  Madison  County  of  that  state,  on  June  28,  1836,  that 
he  himself  first  saw  light.  His  father,  Eli  A.,  a  hatter  by  trade, 
and  his  mother,  Mary  Judson  Gage,  were  respected  members  of 
the  community.  In  1846  the  family  home  was  transferred  to  Rome, 
Oneida  County,  at  which  place  an  academy  had  just  lately  been 
founded.  For  four  years  Lyman  attended  this  institution,  until  in 
1851  stress  of  circumstances  brought  his  scholastic  course  to  an 
end,  and  caused  him  to  start  on  his  long  and  active  business  career. 
At  the  age  of  fourteen  he  obtained  a  position  as  clerk  in  the  local 
post-office.  One  year  later  he  was  promoted  to  be  mail  route  agent 
on  the  Rome  and  Watertown  Railroad,  in  which  capacity  he  served 
for  three  years.     His  natural  disposition  for  banking  was  now  first 


Biographical  163 


manifested.  A  clerkship  in  the  Oneida  Central  Bank  of  Rome, 
which  paid  the  salary  of  $ioo  per  year,  was  open.  Young  Gage 
entered  upon  his  new  labors  in  1854,  The  scope  of  his  duties  was 
wide.  As  general  clerk — a  position  which  since  then  has  received 
another  signification — he  was  teller,  book-keeper,  and  correspond- 
ent, besides  being,  out  of  banking  hours,  janitor  and  watchman. 
With  perfect  confidence  in  his  own  abilities,  he  soon  began  to  feel 
that  he  was  entitled  to  a  larger  remuneration.  Tactfully,  but  still 
firmly,  he  made  the  suggestion  of  his  reasonable  aspirations  to  his 
employers;  but  they  failed  to  accord  his  request.  The  determina- 
tion of  his  life  was  then  taken. 

Nineteen  years  of  age,  and  buoyant  in  hope,  he  decided  to 
join  the  throng  of  ambitious  men  and  women  who  were  turning 
their  faces  toward  the  rising  city  on  the  shores  of  Lake  Michigan. 
On  October  3, 1855,  Mr.  Gage  first  set  foot  in  this  future  metropolis. 
For  a  time  fortune  scarcely  smiled  upon  him.  With  only  the 
scanty  and  depleted  savings  of  previous  toil  in  his  pocket,  the 
choice  of  occupation  was  not  free;  he  must  accept  whatever  might 
be  offered.  Nathan  Cobb  then  owned  the  lumber  yard  and  planing 
mill  on  the  corner  of  Adams  and  Canal  streets.  Here  the  young 
man  obtained  employment.  His  duties  in  this  position  again 
scarcely  admit  of  definition;  although  among  them  were  included 
those  of  book-keeper  and  teamster.  During  the  panic  of  1858  he 
lost  his  job;  the  best  temporary  work  which  he  could  secure  being 
that  of  a  night  watchman  on  the  same  premises.  At  this  point  he 
reached  the  crisis  of  his  career. 

In  his  determination  he  never  faltered.  Always  diligent,  stu- 
dious of  the  interests  of  his  employers,  careful  in  his  own  personal 
conduct,  capable  in  any  emergency,  and  never  depressed  in  spirit, 
he  felt  certain  of  ultimate  triumph  over  all  transient  obstacles. 
His  anticipations  were,  at  this  very  moment  of  apparent  failure, 
about  to  be  fulfilled.  Six  weeks  later  he  was  employed  as  book- 
keeper by  the  Merchants'  Savings,  Loan  and  Trust  Company,  his 
salary  being  fixed  at  five  hundred  dollars  per  annum.  From  the 
day  of  his  assumption  of  this  position  in  August,  1858,  his  advance- 
ment was  not  only  steady,  but  rapid.  Year  by  year  he  was  pro- 
moted, first  in  1859,  to  be  paying  teller  at  $1,200  salary;  next  in 
i860,  to  be  assistant  cashier  at  $2,000  ;  and  finally,  in  1861,  he  was 
appointed  cashier,  which  last  position  he  held  until  1868.  The  ef- 
fects of  this  period  of  service  were  reciprocal.  While  Mr.  Gage 
brought  to  the  performance  of  his  duties  in  every  station  his  cus- 
tomary fidelity  and  sagacity,  he  himself,  on  the  other  hand,  had 
the  exceptional  opportunity  of  meeting  in  close  association  the 
principal  men  of  the  city.  Polished  and  broadened  by  this  inter- 
course, he  passed  through  experiences,  and  reaped  incidental  re- 
wards of  incalculable  value  to  him  in  later  years.  How  trying  the 
war  period  proved  for  Western  bankers  has  elsewhere  been  set 


164  The  First  National  Bank  of  Chicago 

forth.  Mr,  Gage  was  prepared  for  every  turn  of  affairs,  and  con- 
tributed decisively  to  guide  the  institution  with  which  he  was  then 
identified  through  many  troublous  and  anxious  events. 

Upon  the  retirement  of  Cornelius  R.  Field,  cashier  of  the  First 
National  Bank,  in  1868,  that  institution  was  seeking  a  capable  and 
thoroughly  experienced  man  to  fill  his  place.  Attention  was  natu- 
rally directed  to  Mr.  Gage,  and  within  a  short  time  an  arrange- 
ment was  reached  by  which  he  transferred  his  allegiance,  thus  at 
last  entering  upon  his  life's  work.  The  acquisition  of  this  young 
financier,  already  so  well  known,  was  regarded  as  a  decided  acces- 
sion of  strength  ;  so  quickly  did  he  impress  his  individuality  upon 
the  bank,  that  in  1870  he  was  chosen  a  director.  With  self-sacri- 
ficing and  assiduous  labor,  he  toiled  incessantly  to  carve  out 
success  for  the  establishment  with  which  he  was  thenceforth  con- 
nected. Little  by  little  he  became  the  controlling  factor  in  the 
management  of  its  affairs.  Upon  him,  directors,  fellow-officers, 
stockholders,  and  patrons  gradually  came  implicitly  to  rely  ;  and 
under  his  care  and  management  the  bank  grew  and  phenomenally 
flourished.  Through  panics,  depressions,  and  fire  it  not  merely 
stood  unshaken  and  unscathed,  but  even  made  constant  and  regu- 
lar progress,  until  it  attained  national  reputation  for  its  sound 
condition,  not  less  than  for  volume  of  business.  In  this  forward 
movement  Mr.  Gage  reaped  the  chief  honors  ;  cashier  for  fourteen 
years  (1868-1882),  vice-president  for  nine  years  (1882-1891),  and 
president  for  six  years  (1891-1897),  he  filled  every  position  with 
distinction.  He  was  also  the  first  president  of  the  Chicago  Bank- 
ers' Club,  and  likewise  three  times  (1882,  1883,  1884)  chosen  presi- 
dent of  the  American  Bankers'  Association, 

Mr.  Gage  had  for  many  years  had  national  renown  for  his  firm 
convictions  in  favor  of  honest  banking  and  a  sound  currency.  With 
such  views,  president  of  a  great  banking  institution,  long  regarded 
as  among  the  leading  financiers  of  the  country,  and  rendering 
pronounced  service  to  the  defeat  of  economic  heresies  in  the 
campaign  of  1896,  he  was  the  logical  selection  for  the  treasury 
portfolio  in  the  new  Cabinet.  In  February,  1897,  announcing  to 
the  board  of  directors  of  the  First  National  Bank  his  decision  to 
accept  the  tendered  post,  he  offered  his  resignation  as  president 
and  director  of  the  institution  to  which  he  had  devoted  the  twenty- 
nine  best  years  of  his  life;  and  in  the  following  month  removed  to 
Washington.  For  five  years  he  managed  with  distinction  and 
success  the  financial  department  of  the  government,  until  on  Feb- 
ruary I,  1902^  the  day  on  which  his  resignation  became  effec- 
tive—  he  retired  from  the  performance  of  its  duties. 

The  career  of  Mr,  Gage  in  public  station  is  so  well  known 
that  any  detailed  sketch  of  the  past  few  years  would  here  appear 
perfunctory.  History  will  undoubtedly  testify  to  the  skill  and 
brilliancy  with  which  he  conducted  the  affairs  of  his  office.    Sum- 


Biographical  165 


moned  to  the  helm  just  after  a  period  of  financial  stringency,  re- 
quired to  provide  the  revenue  requisite  to  wage  a  foreign  war,  and 
especially  bound  to  elaborate  a  plan  for  the  legal  establishment  of 
a  gold  standard,  he  proved  himself  by  his  initiative  and  sugges- 
tions able  to  solve  the  most  difficult  problems.  The  effects  of  his 
administration  of  the  treasury  department  will  in  many  respects 
be  permanent;  far  more  than  the  majority  of  his  predecessors 
he  impressed  himself  upon  the  economic  history  of  the  nation; 
and  by  just  so  much  the  more  will  he  be  remembered  by  posterity. 

Since  his  withdrawal  from  the  Cabinet  Mr.  Gage  has  been 
chosen  president  of  the  well  known  United  States  Trust  Company 
of  New  York  City,  where  he  in  the  future  intends  to  reside.  He 
has  likewise  recently  been  elected  a  member  of  the  New  York 
Chamber  of  Commerce,  and  a  director  in  the  Chicago  Title  and 
Trust  Company. 

The  mere  sketch  of  the  principal  occupation  of  Mr.  Gage  as  a 
banker  does  not  comprise  the  full  breadth  of  his  activities.  There 
are  other  fields  in  which  he  has  won  distinction  alone  sufficient  to 
entitle  him  to  high  rank.  The  greatest  public  service  ever  rendered 
by  him  to  his  home  city  was,  perhaps,  in  connection  with  the  Co- 
lumbian Exposition.  From  the  beginning  of  the  discussion  of 
the  question  he  was  active  in  his  determination  that  the  Fair 
should  be  held  at  Chicago.  He  helped  to  organize  the  various 
local  committees,  pledged  his  name  that  the  requisite  $10,000,000 
should  be  raised,  and  was  unanimously  chosen  the  first  president 
of  the  Chicago  board  of  directors.  Although  overburdened  with 
his  regular  tasks  as  an  officer  of  the  First  National  Bank,  he  lent 
a  courageous  and  most  efficient  hand  as  the  chief  mainstay  of  the 

f)roject  throughout  the  first  year  of  its  existence.  His  energy  and 
orce  of  character  were  a  constant  inspiration  until  the  conclusion 
of  the  enterprise.  On  January  24,  1891,  he  resigned  as  presi- 
dent of  the  World's  Fair  to  accept  the  presidency  of  his  bank, 
action  which  he  took  chiefly  at  the  urgent  behest  of  those  who  were 
interested  in  the  latter  institution.  Not  only  did  he,  however, 
continue  a  member  of  the  Exposition  directorate,  but  he  posi- 
tively refused  all  pecuniary  remuneration  for  his  services  as  chief 
executive. 

Mr.  Gage  has  always  shown  himself  in  full  sympathy  with  social 
movements.  In  i8gi  he  was  active  in  inaugurating  at  Chicago 
a  series  of  "economic  conferences"  for  the  discussion  of  topics 
bearing  upon  the  mutual  relations  of  capital  and  labor.  Through 
his  personal  efforts  men  of  wealth  and  those  whose  hands  were 
stained  with  toil  were  brought  upon  the  same  platform.  He  him- 
self upon  two  occasions  addressed  these  meetings  with  the  display 
of  a  wide  knowledge  of  economic  problems  and  a  peculiar  felicity 
of  expression.  Somewhat  later  he  was  chosen  president  of  the 
Civic  Federation  of  Chicago, 


i66    The  First  National  Bank  of  Chicago 

In  social  life  Mr.  Gage  has  been  prominent  both  in  Chicago 
and  Washington.  He  has  been  twice  married,  first  in  1864  to  Miss 
Sarah  Etheridge,  daughter  of  Dr.  Francis  B.  Etheridge,  of  Little 
Falls,  New  York;  this  lady  died  in  1874,  leaving  one  son,  Eli  Gage, 
who  still  resides  in  Chicago.  In  1887  Mr.  Gage  again  married, 
this  time  Mrs.  Cornelia  Gage,  of  Denver,  Colorado,  who  died  in 
July,  igoi.  In  his  home  life  Mr.  Gage  has  always  been  noted  for 
his  hospitality.  He  has  a  carefully  selected  library,  in  the  enjoy- 
ment of  which  he  passes  much  time.  Through  diligence  in  read- 
ing the  best  authors,  he  has  accumulated  an  extensive  stock  in  many 
departments  of  knowledge.  While  literature  is  the  chief  object 
of  his  admiration,  he  has  not  neglected  art.  When  a  resident 
of  Chicago  he  was  for  many  years  a  director  and  the  treasurer  of  the 
Art  Institute;  he  was  also  president  of  the  Commercial  Club  and 
a  member  of  the  Chicago  Club.  A  busy  man,  he  does  not  waste 
his  leisure  in  frivolous  amusements.  Known  as  a  strong  Repub- 
lican, but  never  hesitating  to  champion  the  best  men  and  the 
highest  principles  to  whatever  party  belonging,  he  has  often  been 
solicited  to  express  his  views  on  the  platform  and  in  the  press. 
Distinguished  in  so  many  ways,  he  has  risen  to  his  present 
eminence  through  force  of  character;  success  has  been  the  result 
of  untiring  energy.  In  brief,  his  career  affords  a  striking  illustra- 
tion to  the  young  men  of  the  land  of  what  triumphs  can  be  won 
by  perseverance,  industry,  and  honest  purpose. 


FRANKLIN  D.   GRAY 

Franklin  D.  Gray,  son  of  Silas  A.  and  Lucretia  Wadhams  Gray, 
was  born  at  Sharon,  Litchfield  County,  Connecticut,  on  May  ig,  1818. 
Passing  his  early  years  on  a  farm,  and  leaving  the  district  school 
at  ten  years  of  age,  he  went  from  home  two  years  later  to  begin 
commercial  life  as  a  clerk  in  a  small  grocery  store  at  Goshen  Center, 
Connecticut.  There  he  remained  until  he  had  reached  his  twenty-first 
year;  one  year  having  meanwhile  been  spent  in  a  high  school  of  the 
neighborhood.  Thus  equipped,  with  little  book  education,  but  con- 
siderable practical  experience,  young  Gray,  with  two  of  his  fellow 
townsmen,  Messrs.  Norton  and  Walter,  removed  to  Chicago  in  1840; 
and  they  having  soon  established  a  general  store  on  South  Water 
street,  took  him  into  their  employ;  at  the  beginning  of  1845  he 
became  one  of  the  partners  in  the  firm  which  then  assumed  the 
name  of  Norton,  Walter  &  Company.  Four  years  later  the  style 
of  the  house  was  changed  to  Gray  &  Densmore;  and  again,  in  1853, 
to  Gray,  Densmore  &  Phelps;  five  years  subsequently  Mr.  Dens- 
more retired,  selling  his  interest  to  Mr.  Gray,  and  at  the  same 
time    Moses  W.  Gray,   a  brother,  and   Frederick   Gaylord  were 


Biographical  167 


admitted  to  the  partnership,  which  thenceforth  for  several  years 
was  called  Gray,  Phelps  &  Company,  In  1869,  upon  the  retire- 
ment of  Mr.  Gaylord,  the  name  of  Gray  Brothers  &  Co.  was 
adopted.  Several  changes  in  the  members  and  title  of  the  firm 
afterward  occurred,  it  becoming  finally  known  as  Gray,  Burt  &  King- 
man, In  these  later  days  Franklin  D.  Gray  was  a  special  part- 
ner, while  Moses  W.  Gray,  William  Burt,  and  Charles  H.  King- 
man were  general  partners,  until  eventually,  after  the  death 
of  Moses  W.  Gray,  the  partnership  was  dissolved,  and  the  busi- 
ness terminated.  For  the  past  twenty-one  years,  indeed,  Franklin 
D.  Gray  has  not  been  actively  engaged  in  the  grocery  business, 
his  personal  care  being  chiefly  devoted  to  his  other  manifold 
interests. 

In  1866  Mr.  Gray  was  first  chosen  a  member  of  the  board  of 
directors  of  the  First  National  Bank,  which  position  he  continued 
to  hold  until  1899.  Upon  the  death  of  President  Aiken,  and  the 
promotion  of  Samuel  M.  Nickerson  to  the  presidency  of  the  bank, 
m  1867,  he  was  chosen  its  vice-president.  During  the  entire 
period  of  the  first  charter,  until  1882,  he  served  in  this  capacity. 
Throughout  these  many  years  he  was  a  staunch  friend  of  the  insti- 
tution. A  strong  advocate  and  a  prudent  counselor,  he  greatly 
contributed  to  the  success  and  prosperity  of  its  affairs.  Soon 
after  the  reorganization  incidental  to  the  renewal  ot  the  charter  in 
1882,  Mr.  Gray,  for  reasons  of  expediency,  resigned  the  vice- 
presidency;  it  being  considered  imperative  that  he  should  assume 
the  presidency  of  the  National  Safe  Deposit  Company,  which, 
as  elsewhere  explained,  was  organized  as  a  corporation  subsidiary 
to  the  bank.  Until  1899  he  served  as  a  member  of  the  board  of 
directors  of  the  latter;  finally  voluntarily  retiring  at  that  time 
because  of  his  advanced  years,  and  his  desire  to  enjoy  greater 
ease,  reinforced  by  his  belief  that  the  interests  of  the  institution 
would  be  better  conserved  by  younger  and  more  active  men. 

Aside  from  his  business  career,  in  which  he  has  reaped  the 
rewards  of  well-merited  success,  Mr.  Gray  has  long  been  known 
in  his  home  city  as  a  practical  philanthropist  and  active  helper  in 
many  lines  of  endeavor.  To  many  institutions  devoted  to  chari- 
table and  benevolent  objects  he  has  frequently  and  liberally  given 
both  of  his  fortune  and  time;  while  in  several  instances  taking  an 
active  and  prominent  part,  he  has  never  been  lacking  in  sympathy 
and  suggestion.  In  early  days  he  was  a  member  of  Engine  Com- 
pany No.  I,  being  its  secretary  and  treasurer  for  a  period  of  ten 
years.  Later  he  co-operated  in  the  establishment  of  the  Fire- 
men's Insurance  Company. 

On  July  4,  1843,  Mr.  Gray  was  married,  at  Norfolk,  Connecticut, 
to  Ann  O.Phelps,  daughter  of  Jeremiah  Phelps,  who  is  no  longer 
among  the  living.    Although   he  has  already  passed  the  age  of 


i68   The  First  National  Bank  of  Chicago 

four-score,  he  continues  to  give  daily  care  to  his  numerous  financial 
and  business  interests.  He  is  respected  and  honored  by  ail  who 
know  him  for  his  sterling  qualities  of  mind  and  character. 


ROLAND  C.  NICKERSON 

Roland  C.  Nickerson,  son  of  Samuel  M.  and  Matilda  P.  Nick- 
erson,  was  born  at  Chicago  on  July  27,  1859.  His  early  education 
was  obtained  in  the  schools  of  his  native  city,  and  was  subse- 
quently supplemented  by  training  in  France  and  Germany.  After 
returning  home,  prepared  for  active  life,  he  at  once  entered  the 
service  of  the  First  National  Bank,  Later  he  opened  a  banking 
and  brokerage  house  at  Chicago,  in  which  pursuit  he  was  engaged 
until  June,  1900,  when  he  retired  from  business,  and  thereupon 
removed  to  New  York  City.  From  1892  to  1900  Mr.  Nicker- 
son served  as  a  member  of  the  board  of  directors  of  the  First 
National  Bank. 


HENRY  H.  PORTER 

Henry  H.  Porter,  son  of  Rufus  King  and  Lucy  L.  Porter,  was 
born  at  Machias,  Maine,  in  1837.  His  early  years  were  spent  in 
his  native  town  and  at  school  at  Washington  Academy  and  Ando- 
ver  Academy,  in  the  state  of  Massachusetts.  At  fourteen  years  of 
age  he  began  business  life  as  a  clerk  in  a  country  store  at  East- 
port,  Maine.  In  1853  he  removed  to  Chicago,  where  he  obtained 
employment  in  the  offices  of  the  Galena  and  Chicago  Union  Rail- 
way ;  until  i860  he  was  engaged  in  various  subordinate  positions, 
acting  from  time  to  time  as  cashier,  claim  agent,  paymaster,  and 
general  ticket  agent.  During  the  next  five  years  he  was  in  the 
service  of  the  Michigan  Southern  and  Northern  Indiana  Railway^ 
now  a  part  of  the  Michigan  Southern  and  Lake  Shore  system — in 
the  capacity  of  general  freight  agent  and  general  superintendent. 
He  then,  from  1866  to  1871,  turned  his  attention  to  the  lumber 
trade,  joined  in  a  partnership  under  the  name  of  Spaulding  & 
Porter,  and  did  a  large  business  on  the  Menominee  and  Cedar 
rivers,  in  Wisconsin  and  Michigan.  In  1868  he  was  elected  a 
director  of  the  First  National  Bank  of  Chicago,  a  post  he  filled 
with  distinction  until  1891.  About  the  same  time,  1868,  he  likewise 
was  chosen  a  member  of  the  board  of  the  Chicago,  Rock  Island 
and  Pacific  Railway,  upon  which  he  continued  for  the  next  thirty 
years.  In  1870  he  became  a  director  of  the  Chicago  and  North- 
western Railway,  which  position  he  held  until  1877.    Meanwhile,  he 


Biographical  169 


was  for  a  period  general  manager  of  this  road,  and  was  a  director 
in  the  Union  Pacific  Railway.  In  connection  with  several  asso- 
ciates, he  purchased,  in  1875,  the  West  Wisconsin  Railway,  and  as 
a  result  of  tliis  transaction,  bought,  constructed,  and  consolidated 
the  various  lines  now  forming  the  Chicago,  St.  Paul,  Minneapolis 
and  Omaha  Railroad,  of  which  he  was  for  some  years  president. 
He  also,  through  purchase,  obtained  control  of  the  St.  Paul  and 
Duluth  Railway,  serving  as  its  president  until  its  subsequent  sale. 
About  1882,  Mr.  Porter  and  others  bought  the  Union  Steel  Com- 
pany, of  Chicago,  then  in  bankruptcy,  and  after  its  reorganization 
amalgamated  it  witli  the  North  Chicago  Rolling  Mill  Company, 
and  the  Joliet  Steel  Company.  In  1886,  he  was  one  of  the  syndi- 
cate which  purchased  the  Minnesota  Iron  Company,  and  the 
Duluth  and  Iron  Range  Railway,  and  for  many  years  was  at  the 
head  of  their  board.  When  these  properties  were  transferred  to 
the  Federal  Steel  Company,  he  was  chosen  chairman  of  the  latter 
corporation,  in  which  position  he  served  until,  in  conjunction  with 
other  companies,  it  entered  the  combination  known  as  the  United 
States  Steel  Corporation.  From  1883  to  1887,  he  bought  up  the 
different  roads  now  constituting  the  Chicago  and  Eastern  Illinois 
Railway,  of  which  he  is  chairman.  During  the  last  few  years,  he 
has  also  been  a  director  of  the  Brooklyn  Rapid  Transit  Company, 
of  New  York. 

Mr.  Porter  married  Eliza  T.  French,  daughter  of  G.  H.  French, 
of  Chicago  ;  they  have  three  children,  Mrs.  G.  S.  Isham,  H.  H. 
Porter,  Jr.,  and  George  F.  Porter.  From  1853  to  i8q8,  Mr.  Porter 
resided  in  Chicago  ;  at  the  last-mentioned  date  he  removed  his 
home  to  New  York.  He  still  retains  his  country  place  at  Lake 
Geneva,  Wisconsin,  where  he  always  passes  the  summer.  Mr. 
Porter  is  not  only  a  man  of  commanding  position  in  the  financial 
and  industrial  world,  but  also  a  gentleman  of  excellent  personal 
qualities. 

GEORGE  C.   WALKER 

George  C.  Walker  was  born  at  Burlington  Flats,  Otsego 
County,  New  York,  on  November  5,  1835.  His  ancestors  came  to 
America  in  1640.  At  the  time  of  his  birth  his  father  had  already 
settled  in  Chicago.  At  an  early  age  he  lost  his  mother,  and  then 
for  some  years  he  resided  with  his  grandfather  at  Plainfield,  New 
York.  During  this  period  he  frequented  the  public  schools  in 
winter,  and  worked  on  the  farm  in  the  summer  season.  When 
twelve  years  of  age  he  joined  his  surviving  parent  in  Chicago;  and 
after  his  arrival  in  this  city  attended,  for  a  year,  the  academy  kept 
by  Benjamin  F.  Taylor,  a  man  subsequently  well  known  in  the 
literature  of  the  West. 


lyo   The  First  National  Bank  of  Chicago 

Mr.  Walker  then  began  business  as  an  employee  in  his  father's 
lumber  yard.  The  following  winter  (1848-1849)116  took  a  brief  course 
at  the  Temple  Academy.  The  next  spring  he  went  to  Southport, 
now  Kenosha,  and  bought  a  quantity  of  wheat,  graded  it,  and  sold 
it  at  a  very  considerable  profit.  He  then  hired  a  canal-boat  and 
made  a  successful  trading  trip  to  St.  Louis.  For  some  time  he 
remained  in  the  employ  of  his  father;  then  passed  one  year  at  Be- 
loit  College  and  a  winter  at  Brown's  University,  Providence,  Rhode 
Island.  His  ambition  had  been  to  obtain  a  collegiate  degree,  but 
unexpectedly  he  received  the  offer  of  a  partnership  in  the  firm  of 
Charles  Warner  &  Son,  which  he  accepted.  Until  1888  Mr.  Walker 
was  actively  engaged  in  the  commission  and  provision  business. 
In  1880  he  also  added  the  stock  business  as  a  department.  The 
firm  then  became  a  member  of  the  New  York  Cotton  Exchange, 
and  soon  afterward  was  one  of  the  first  to  obtain  the  use  of  an 
exclusively  private  wire  for  its  telegraphic  reports.  Mr.  Walker 
is  now  a  member  of  the  New  York  Stock  Exchange,  of  the  Chicago 
Stock  Exchange,  and  the  Chicago  Board  of  Trade.  From  1867  to 
1869  he  also  served  as  a  member  of  the  board  of  directors  of  the 
First  National  Bank. 

He  is  likewise  interested  in  Chicago  real  estate.  In  1868  he 
bought  1,300  acres  of  land  near  the  city,  and  soon  started  the  town 
of  Washington  Heights.  Somewhat  later  he  laid  out  Morgan  Park, 
to  which,  in  1888,  he  presented  for  library  purposes  land  and  build- 
ings valued  at  $12,000,  besides  making  a  liberal  contribution  for 
books.  Afterward  he  donated,  in  1892,  another  building  and  two 
acres  of  land,  valued  at  $30,000;  and  again,  $100,000  for  the  erec- 
tion of  a  Museum  of  Science.  Ever  since  1864,  the  date  of  its 
organization,  Mr.  Walker  has  been  prominent  in  the  Chicago  Acad- 
emy of  Science.  He  is  a  regular  attendant  at  Immanuel  Baptist 
Church.  He  has  been  twice  married;  first,  in  1858,  to  Ada  Chap- 
man of  Buffalo,  who  died  in  1861;  and  again,  in  1880,  to  Mrs.  Mary 
M.  Keen  of  New  York. 


Ill 

BIOGRAPHIES  OF  PERSONS  NOW  ACTIVELY 
CONNECTED  WITH  THE  BANK 

(  SAMUEL  W.  ALLERTON 

Samuel  W.  Allerton  was  born  at  Amenia  Union,  in  Dutchess 
County,  New  York,  on  May  26,  1828.  His  early  youth  was  passed 
on  the  farm,  and  he  received  only  such  education  as  the  country 
schools  of  that  time  offered.  His  first  ambition  was  to  be  a  stock 
dealer.  Before  he  was  twenty  he  had  developed  a  strong  taste  in 
this  direction,  and  had  shown  such  ability  as  to  make  him  well 
known  in  his  neighborhood.  As  the  scope  of  his  affairs  broadened, 
the  western  country  attracted  his  attention  as  a  better  field  for 
his  energies  than  that  of  his  native  state.  Starting  out,  therefore, 
in  1856,  m  quest  of  a  future  home  and  fortune,  he  gradually  pushed 
westward,  until  finally  he  settled  on  the  prairie  in  Piatt  County, 
Illinois.  Here  he  again  pursued  his  old  avocation.  With  the 
growth  of  his  transactions,  the  rising  city  of  Chicago  afforded  him 
more  and  more  a  market,  of  which  he  was  quick  to  take  advantage. 
Little  by  little  he  perceived  that  as  an  accessory  to  his  immediate 
business,  he  must  provide  suitable  facilities,  in  the  coming  me- 
tropolis, for  handling  the  shipments  which  he  made  thither.  With 
this  aim,  he  first  opened  here  an  agency,  to  which  he  consigned  his 
live  products  ;  then,  in  the  ordinary  course,  the  next  move  was 
the  inauguration  of  a  packing  house.  This  step  accomplished, 
his  operations  had  already  developed  to  such  an  extent  that  his 
own  farm  in  Illinois  was  no  longer  capable  of  supplying  the  de- 
mands which  trade  made  upon  him  ;  hence,  other  more  extended 
connections  with  the  sources  of  supply  throughout  the  West — he 
now  owns  40,000  acres  of  land  in  Ohio,  Illinois,  and  Iowa — and  in 
turn,  as  the  inevitable  result,  the  establishment  of  additional 
packing  plants  at  St.  Louis,  Omaha,  Kansas  City,  Pittsburg,  Balti- 
more, Philadelphia,  and  Jersey  City. 

The  growth  of  Mr.  Allerton's  business  may  well  be  cited  as  a 
fair  standard  by  which  to  measure  the  development  of  the  pack- 
ing interests  of  Chicago.  Through  his  energies,  and  those  asso- 
ciated with  him,  the  Stock  Yards  have  been  largely  built  up.  When 
he  first  entered  upon  his  labors  in  this  field,  scarcely  a  single  es- 
tablishment of  the  kind  existed.  As  an  indication  of  the  magni- 
tude locally  attained  by  this  industry   it  should  be  cited  that  in 

171 


172   The  First  National  Bank  of  Chicago 

1901,  3,031,396  head  of  cattle,  and  8,903,494  hogs  arrived  at  the 
Union  Stock  Yards,  of  which  1,999,820  of  the  former  and  7,599,532 
of  the  latter  were  slaughtered  and  packed. 

While  Mr.  Allerton  has  been  chiefly  preoccupied  with  the  pro- 
motion of  this  special  trade,  he  likewise  early  became  known  as 
an  influential  leader  in  the  world  of  finance.  The  earnings  an- 
nually accruing  to  him  from  his  manifold  activities  he  naturally 
felt  must  be  properly  and  safely  placed.  With  much  prudence 
and  sound  judgment,  he  has  always  carefully  selected  the  objects 
of  his  permanent  investments.  Generally  disposed  to  favor  finan- 
cial enterprises  of  the  larger  class,  he  has  long  been  identified 
with  many  important  institutions  of  the  city. 

In  1863  he  was  one  of  the  men  originally  interested  in  the 
foundation  of  the  First  National  Bank.  From  the  date  of  its 
organization  he  has  continued  to  be  a  member  of  its  board  of  direc- 
tors; enjoying  at  the  present  moment,  together  with  Samuel  M.Nick- 
erson,  the  unique  distinction  of  having  served  in  this  capacity  during 
the  past  thirty-nine  years.  Through  his  constant  care,  wise  con- 
servatism, and  still  inexhaustible  energy,  he  has  rendered  the  cor- 
poration invaluable  services.  Among  all  those  who  have  been 
connected  with  it  during  its  history,  he  has  always  been  foremost 
in  solicitude  for  its  welfare  and  progress.  For  many  years  he 
was  a  director  of  the  Chicago  City  Railway  Company,  and  like- 
wise served  as  a  director  of  the  Columbian  Exposition.  He  has 
also  been  active  in  many  other  corporations  and  business  enter- 
prises of  Chicago  and  elsewhere.  In  every  position  which  he 
has  occupied,  he  has  been  recognized  as  a  man  of  ability  and 
prudence. 

Politically,  Mr.  Allerton  is  a  Republican,  a  strong  protectionist, 
and  an  advocate  of  all  which  advances  the  condition  of  American 
labor.  While  frequently  mentioned  for  public  office,  he  has  usually 
strenuously  avoided  any  such  preferment.  Only  in  1893  he  allowed 
himself  to  be  named  as  the  Republican  candidate  for  the  mayor- 
alty of  Chicago. 

Since  1856,  with  only  temporary  intermissions,  he  has  main- 
tained his  permanent  residence  in  Chicago.  Of  late  years  he  has, 
in  a  certain  measure,  withdrawn  from  the  active  life  which  he 
so  long  followed.  During  this  latter  period  he  has  traveled  exten- 
sively, and  now  almost  always  passes  the  winter  season  at  his 
temporary  home  in  Pasadena,  California. 


Biographical  173 


JOHN  H.  BARKER 

John  H.  Barker,  the  son  of  John  and  Cordelia  E.  Collamer 
Barker,  was  born  on  February  4,  1844,  at  Michigan  City,  Indiana. 
He  received  his  early  education  in  the  common  schools  of  his  native 
town,  and  subsequently  attended  Racine  College,  at  Racine,  Wis- 
consin. When  nineteen  years  of  age  he  removed  to  Chicago,  where 
for  two  years  he  was  employed  as  clerk  in  a  wholesale  grocery 
house.  Then  going  to  Springfield,  Illinois,  he  there  engaged  in 
the  same  business  on  his  own  account.  In  that  city  he  remained 
three  years,  at  the  expiration  of  which  time  he  once  more  returned 
to  Chicago.  After  two  years  passed  here  in  the  grocery  trade, 
he  again  went  back  to  the  place  of  his  birth,  where  he  became 
connected  with  the  Haskell  &  Barker  Car  Co.,  of  which  he  was 
eventually  elected  president,  the  position  still  held  by  him.  Mr.  Bar- 
ker has  had  an  extensive  connection  with  the  world  of  finance.  In 
1887  he  was  chosen  director  of  the  Union  National  Bank  of  Chicago, 
and  upon  its  consolidation,  in  1900,  with  the  First  National  Bank, 
was  elected  to  the  board  of  the  latter  institution.  He  is  also 
a  director  of  the  First  National  Bank  of  Duluth,  Minnesota,  and  is 
largely  associated  with  banking  interests  at  St.  Paul,  Minnesota. 

From  1880  to  1882  Mr.  Barker  served  as  mayor  of  Michigan 
City,  Indiana. 

ADOLPHUS  C.  BARTLETT 

Adolphus  C.  Bartlett,  son  of  Aaron  and  Delia  Dibell  Bartlett, 
was  born  at  Stratford,  New  York,  on  June  22,  1844.  He  received 
his  education  at  the  village  schools,  the  Dansville  Academy,  and 
the  Clinton  Liberal  Institute  at  Clinton,  New  York.  At  nineteen 
years  of  age  he  came  to  Chicago,  and  was  almost  immediately 
employed  by  Tuttle,  Hibbard  &  Co.,  at  a  later  date  succeeded  by 
Hibbard,  Spencer  &  Co.,  in  the  hardware  trade.  Gradually  he 
became  interested  in  the  business,  and  within  six  years  was 
admitted  to  the  firm  as  a  general  partner.  Upon  the  organization 
of  the  present  corporation  of  Hibbard,  Spencer,  Bartlett  &  Co., 
he  was  elected  secretary,  and  subsequently  vice-president.  While 
liis  chief  energy  has  been  devoted  to  the  upbuilding  of  this  house, 
he  has  also  been  largely  identified  with  other  financial  and  busi- 
ness enterprises  in  Chicago.  From  1891  to  the  close  of  its  career, 
he  was  a  member  of  the  Board  of  Directors  of  the  Metropolitan 
National  Bank.  He  is  likewise  a  director  of  The  Northern  Trust 
Company  and  The  Liverpool,  London  &  Globe  Insurance  Com- 
pany.   He  was  a  director,  before  the  sale  to  the  present  owners  of 


174  The  First  National  Bank  of  Chicago 

the  Chicago  &  Alton  Railroad  Company,  and  since  the  merger  of 
the  INletropoHtan  National  Bank  in  the  First  National  Bank  has 
been  a  member  of  the  board  of  the  latter  institution. 

Mr.  Bartlett  is  a  well-known  club  member,  has  served  as 
president  of  the  Commercial  Club,  as  director  of  the  Relief  and 
Aid  Society,  as  trustee  of  Beloit  College,  as  president  of  the 
Home  for  the  Friendless,  as  trustee  of  the  University  of  Chicago, 
as  director  in  the  Chicago  Orphan  Asylum  and  the  Old  Peoples' 
Home,  the  Art  Institute  and  the  Athzeneum.  The  only  public 
office  which  he  has  ever  held  is  that  of  member  of  the  Board  of 
Education. 

AUGUST  BLUM 

August  Blum  was  born  and  educated  in  Germany.  After  an 
apprenticeship  in  the  office  of  a  mercantile  house  he  came  to  the 
United  States  in  1867  and  obtained  employment  in  the  banking 
establishment  of  Henry  Greenebaum  &  Company  at  Chicago. 
Soon  promoted  to  be  the  head  of  the  firm's  foreign  department, 
he  remained  in  this  position  until  1877,  when  the  house  went  out 
of  business.  Thereupon  he  accepted  a  confidential  post  with 
Limburger  &  Thalmann  (afterwards  Ladenburg,  Thalmann  & 
Co.)  private  bankers  in  New  York  City,  with  whom  he  continued 
two  years.  Returning  then  for  personal  reasons  to  Chicago,  he 
accepted  the  management  of  the  foreign  department  of  the  Inter- 
national Bank  of  this  city.  In  August,  1881,  Mr.  Blum  was  called 
to  organize  a  similar  department  at  the  Union  National  Bank.  As 
its  manager  he  served  until  the  beginning  of  1890,  when  he  was 
assigned  to  an  executive  position,  meanwhile  in  January,  1888, 
having  been  appointed  assistant  cashier.  Elected  cashier  in  1892, 
he  filled  that  post  until  the  consolidation  with  the  First  National 
Bank,  in  September,  1900,  whereupon  he  was  chosen  an  assistant 
cashier  in  the  latter  institution. 


EMILE  K.  BOISOT 

Emile  K.  Boisot  was  born  on  February  26, 1859,  at  Dubuque,  Iowa, 
and  was  educated  in  the  grammar  and  high  schools  of  that  city. 
In  1875  he  obtained  employment  with  the  German  Bank  at  Dubuque, 
where  he  remained  for  three  years.  Coming  to  Chicago  in  1878,  he 
immediately  entered  the  bond  department  of  the  First  National 
Bank.  Here  he  has  been  continuously  engaged  since  that  date. 
After  serving  in  different  capacities  he  was  finally,  on  January  i, 
1897,  promoted  to  be  manager  of  the  foreign  exchange  and  bond 
department.  In  1901,  upon  the  separation  of  these  lines  into  two 
distinct  branches,  he  retained  charge  of  the  latter  division. 


Biographical  175 


GEORGE  D.  BOULTON 

George  D.  Boulton  was  born  at  Cobourg,  Canada,  on  June  13, 
1844.  His  education  was  received  at  Upper  Canada  College  in 
the  city  of  Toronto. 

In  i860,  attracted  by  the  apparently  brilliant  opportunities  of 
South  America,  he  went  thither,  but  his  anticipations  of  amassing 
wealth  not  being  realized,  he  returned  after  a  brief  interval  to  his 
native  place.  Here  he  temporarily  obtained  employment  as  a 
book-keeper  in  a  large  mercantile  establishment. 

In  the  fall  of  1863,  ^^  the  age  of  nineteen  years,  he  came  to 
Chicago,  and  soon  thereafter  formed  a  connection  with  the  First 
National  Bank.  Except  for  two  years  (1865-1866),  his  term  of 
service  with  this  institution  has  been  continuous.  Commencing  as 
a  book-keeper,  he  was  advanced  step  by  step,  until  in  1869  the 
Foreign  Exchange  Department  was  organized  under  his  direction 
as  manager.  Later,  in  1870,  the  bond  department  was  also  devel- 
oped, and  placed  under  his  charge.  He  held  the  position  of 
manager  of  the  foreign  exchange  and  bond  department  until  igoo, 
when  he  was  promoted  to  be  vice-president  of  the  bank.  Since 
1897  he  has  also  served  as  a  member  of  the  board  of  directors. 


FRANK  E.  BROWN 

Frank  E.  Brown  was  born  at  Peru,  Indiana,  in  1850,  At  the 
age  of  seven  years  he  came  with  his  parents  to  Chicago,  where 
his  education  was  received  in  the  public  schools.  When  eighteen 
years  old  he  entered  the  employ  of  Smith  Brothers,  wholesale 
grocers;  later  became  chief  clerk  of  construction  for  the  Rock- 
ford,  Rock  Island  and  St.  Louis  Railway,  and  subsequently  was 
in  charge  of  one  of  the  grain  elevators  in  Chicago.  In  1875  he 
entered  the  service  of  the  Third  National  Bank  as  a  book-keeper, 
and  upon  its  failure,  in  1877,  was  employed  by  the  First  National 
Bank.  In  this  institution  he  has  served  as  book-keeper,  assistant 
chief  clerk,  and  chief  clerk,  being  finally  promoted,  in  1900,  to  be 
assistant  cashier. 


176   The  First  National  Bank  of  Chicago 


WILLIAM  L.  BROWN 

William  L.  Brown  was  born  at  St.  Joseph,  Michigan,  on 
August  23,  1842.  In  1848,  together  with  his  parents,  he  removed 
to  Chicago,  where  his  education  was  received  at  public  and  private 
schools.  For  many  years  his  father  was  engaged  in  the  grain  and 
forwarding  business,  and  was  one  of  the  earliest  members  of  the 
Chicago  Board  of  Trade.  He  himself  commenced  his  business 
career  in  1859  as  a  clerk  for  a  Board  of  Trade  commission  house. 
In  1862  he  enlisted  as  a  member  of  the  Chicago  Mercantile  Bat- 
tery of  Light  Artillery,  serving  with  it  until  the  close  of  the  war. 
Upon  returning  to  this  city  he  engaged  in  the  pig  iron  business,  in 
which  he  has  since  then  taken  an  active  part.  The  firm  of  Pick- 
ands,  Brown  &  Co.,  of  which  he  is  a  member,  is  one  of  the  oldest 
and  best  known  in  the  country. 

He  became  interested  in  1890  in  ship-building,  and  together 
with  others  organized  the  Chicago  Ship-building  Company.  In 
1899  a  large  number  of  the  lake  shipyards  were  consolidated  under 
the  name  of  the  American  Ship-building  Company,  and  Mr.  Brown 
was  elected  president  of  the  new  corporation,  a  position  which  he 
still  holds.  He  is  also  president  of  the  South  Chicago  Furnace 
Company,  manufacturers  of  pig  iron,  and  a  director  in  the  Illinois 
Steel  Company.  Mr.  Brown  has  devoted  much  of  his  time  and 
energy  to  the  promotion  of  the  interests  of  the  iron,  steel,  and 
marine  industries  of  the  Great  Lakes  district,  in  which  pursuits 
he  is  still  actively  engaged. 

He  was  chosen  a  director  of  the  Union  National  Bank  in  1900, 
and  upon  its  consolidation  with  the  First  National  Bank,  was 
elected  to  the  board  of  the  latter  institution. 


D.   MARK  CUMMINGS 

D.  Mark  Cummings,  son  of  Columbus  R.  Cummings  and  Sarah 
M.  Cummings,  was  born  at  Pekin,  Illinois.  He  obtained  his  early 
education  in  his  native  town,  subsequently  attended  Racine  Col- 
lege, Racine,  Wisconsin,  and  Phillip's  Academy,  Andover,  Massa- 
chusetts, and  graduated  from  Yale  College  with  the  class  of  1887. 
Upon  the  termination  of  his  school  life,  he  returned  to  Chicago, 
where  he  at  once  engaged  in  business  as  a  banker  and  broker, 
first  in  connection  with  F.  H.  Watriss  and  J.  B.  Breese,  under  the 
firm  name  of  Watriss,  Breese  &  Cummings,  and  subsequently  with 
J.  B.  Breese  as  Breese  &  Cummings.  Mr.  Cummings,  upon  the 
death  of  his  father,  on  July  12,  1897,  succeeded  him  in  the  man- 
agement of  many  of  his  large  financial  enterprises.     In  the  same 


Biographical  177 


year  he  was  elected  a  director  of  the  Union  National  Bank  of  Chi- 
cago, serving  in  that  capacity  until  its  consolidation  with  the  First 
National  Bank,  at  which  time  he  was  chosen  a  member  of  the  lat- 
ter's  board.  He  is  also  vice-president  of  the  South  Chicago  City 
Railway,  and  vice-president  of  the  Hammond,  Whiting  and  East 
Chicago  Railway. 


EDWARD  DICKINSON 

Edward  Dickinson,  son  of  Charles  and  Eliza  E.  Dickinson, 
was  born  in  Chicago  on  November  2,  1863.  When  he  was  two 
years  of  age  his  parents  removed  to  Milwaukee,  and  with  them  he 
remained  until  1873.  Then,  only  ten  years  old,  he  returned  to 
Chicago,  and  in  the  public  schools  of  this  city  completed  his 
education.  In  1878  he  obtained  employment  as  a  messenger  with 
the  banking  firm  of  Preston,  Kean  &  Co.,  was  gradually  promoted, 
and  in  1884,  when  the  Metropolitan  National  Bank  was  organized 
as  the  successor  of  the  earlier  house,  he  remained  with  it  in  the 
capacity  of  paying  teller.  In  1892  he  was  appointed  second 
assistant  cashier,  and  in  1894  advanced  to  be  assistant  cashier, 
which  position  he  held  until  the  absorption  of  the  institution  by 
the  First  National  Bank,  in  which  he  was  then  chosen  an  assistant 
cashier.  In  1899  Mr.  Dickinson  assisted  in  the  organization  of  the 
La  Grange  State  Bank,  at  La  Grange,  Illinois,  and  was  elected  its 
president.  He  likewise  served,  in  1901,  as  treasurer  of  the  Board 
of  Lincoln  Park  Commissioners. 


DAVID   R.  FORGAN 

David  R.  Forgan,  the  son  of  Robert  and  Elizabeth  Forgan, 
was  born  at  St.  Andrews,  Scotland,  on  April  16,  1862,  He  received 
a  common-school  education  in  his  native  town.  At  the  age  of 
fifteen  years  he  entered  the  service  of  the  St.  Andrews  Branch  of 
the  Clydesdale  Bank.  He  remained  in  its  employ  about  three 
years  and  a  half,  when  migrating  to  Canada,  in  1880,  he  joined  his 
fortunes  with  the  Bank  of  Nova  Scotia.  With  this  institution  he 
was  connected  during  a  period  of  ten  years,  the  last  five  of  which 
he  served  as  agent  of  its  branch  at  Fredciicton,  New  Brunswick. 
Believing  that  there  was  a  larger  field  of  activity  in  the  western 
states,  he  removed  to  Minnesota  in  1890,  and  soon  thereafter  be- 
came assistant  cashier  of  the  American  Exchange  Bank  of  Du- 
luth.  In  that  position  he  continued  until,  in  1892,  he  was  called  to 
succeed  his  brother,  James  B.  Forgan,  as  cashier  of  the  North- 
western National  Bank  of  Minneapolis.     Four  years  later  he  was 


178    The  First  National  Bank  of  Chicago 

chosen  to  be  vice-president  of  the  Union  National  Bank  of  this 
city,  which  post,  including  the  practical  management,  he  assumed 
on  January  i,  1896.  At  the  end  of  two  years  he  was  promoted  to 
be  president  of  that  bank,  filling  this  position  until  the  date  of  its 
consolidation  with  the  First  National  Bank,  in  September,  1900. 
Upon  this  occasion  he  was  elected  a  director  and  senior  vice- 
president  of  the  latter  institution. 

JAMES   B.    FORGAN 

James  Berwick  Forgan,  son  of  Robert  and  Elizabeth  Forgan, 
was  born  April  11,  1852,  at  St.  Andrews,  Scotland;  and  educated 
at  Madras  College,  St.  Andrews,  and  Forres  Academy,  Forres. 
At  the  age  of  seventeen,  after  having  spent  a  short  time  in  a  law- 
yer's ofifice,  he  entered  the  employ  of  the  Royal  Bank  of  Scotland 
at  its  St.  Andrews  branch.  After  three  years'  "apprenticeship" 
in  the  Royal  Bank,  he  secured  a  position  with  the  Bank  of  British 
North  America  in  London  and  was  sent  by  that  institution  to 
Montreal,  Canada;  after  filling  various  clerical  positions  in  its 
Montreal,  New  York,  and  Halifax  offices,  he  joined  the  service  of 
the  Bank  of  Nova  Scotia  as  paying  teller,  at  the  last-named  city. 
Later  he  became  agent  of  the  bank  at  Liverpool,  Nova  Scotia,  and 
again  at  Woodstock,  New  Brunswick,  and  subsequently  was  pro- 
moted to  the  position  of  inspector  of  branches.  In  1885  he  estab- 
lished and  took  charge  of  a  branch  of  that  bank  in  Minneapolis, 
Minnesota.  Three  years  later, on  the  invitation  of  the  directors  of 
the  Northwestern  National  Bank  of  Minneapolis,  he  accepted  the 
cashiership  of  that  institution.  Four  years  subsequently  (1892)  at 
the  request  of  Mr.  Gage  he  was  elected  vice-president  of  the 
First  National  Bank  of  Chicago,  and  three  years  ago  he  succeeded 
to  the  presidency. 

JOHN  E.   GARDIN 

John  E.  Gardin  was  born  at  Charleston,  South  Carolina,  on 
February  8,  1853.  At  an  early  age  he  went  to  Germany  and  there 
received  his  education.  His  first  business  experience  was  gained 
in  the  banking  house  of  Pflaum  &  Company,  now  known  as  the 
Wiirtembergische  Bankanstalt  at  Stuttgart.  Soon  after  return- 
ing to  this  country  he  came  to  Chicago,  and  in  November,  1881, 
entered  the  service  of  the  First  National  Bank.  There  he  has 
filled  various  positions,  chiefly  in  its  foreign  exchange  and  bond 
department,  of  which  he  became,  in  1897,  assistant  manager.  Upon 
the  separation  of  these  two  lines  of  business,  in  1901,  he  was  ap- 
pointed manager  of  the  foreign  exchange  department. 


Biographical  179 


CHARLES  N.   GILLETT 

Charles  N.  Gillett  was  born  at  Albany,  New  York,  on  August 
4,  i860.  While  quite  a  lad  he  came  West  with  his  parents,  who 
settled  in  Chicago.  He  attended  the  common  schools  of  Hyde 
Park  for  several  years,  and  then  was  employed  in  a  wholesale 
paper  house.  When  this  establishment,  in  1881,  retired  from  busi- 
ness, he  secured  a  position  as  messenger  in  the  First  National 
Bank.  Gradually,  by  various  promotions,  he  became  first  paying 
teller,  a  position  which  he  held  for  five  years,  and  subsequently 
chief  clerk,  in  which  capacity  he  served  a  similar  length  of  time. 
In  January,  1900,  Mr.  Gillett  was  elected  an  assistant  cashier. 


HOWARD  H.  HITCHCOCK 

Howard  H.  Hitchcock,  son  of  Charles  I.  and  Mary  E.  Hitch- 
cock, was  born  at  La  Centre,  Illinois,  on  December  10,  1858.  He 
was  educated  at  the  public  schools  of  Amboy  in  the  same  state 
and  those  of  Chicago.  To  this  last  named  city  he  came  in  1873, 
was  employed  by  Preston,  Kean  &  Co.  on  January  18,  1875,  and 
continued  in  the  service  of  the  Metropolitan  National  Bank  when 
that  institution,  in  1884,  succeeded  to  the  business  of  the  former 
firm.  In  1887  he  was  appointed  assistant  cashier,  and  in  1894 
promoted  to  be  cashier,  retaining  that  position  until  the  consoli- 
dation with  the  First  National  Bank  was  effected.  At  this  time 
Mr.  Hitchcock  was  chosen  one  of  the  vice-presidents  of  the  latter 
institution. 

HOLMES  HOGE 

Holmes  Hoge  was  born  on  March  2,  1842,  in  Alleghany  City, 
Pennsylvania.  With  his  parents  he  removed  to  Chicago  in  1848, 
residing  either  in  this  city  or  Evanston  since  that  date.  In  1857  he 
left  school  and  started  for  himself  in  life.  His  first  employment  was 
as  messenger  boy  with  the  Western  Union  Telegraph  Company. 
A  year  later,  however,  he  resumed  his  studies,  entered  the  high 
school,  and  graduated  with  the  class  of  1861.  In  August,  1862,  he 
enlisted  as  a  private  in  the  Chicago  Mercantile  Battery,  in  which 
organization  he  served  until  the  following  spring.  He  was  then 
commissioned  captain  and  assistant  quartermaster.  His  field  of 
service  included  a  portion  of  the  Department  of  Tennessee;  he 
was  present  at  the  siege  and  capitulation  of  Vicksburg,  and  being 
subsequently  ordered  to  the  Department  of  the  Gulf,  remained 


i8o  The  First  National  Bank  of  Chicago 


there  until  mustered  out  at  the  close  of  the  war.  In  1866,  having 
returned  to  Chicago,  he  obtained  a  clerical  position  in  the  Third 
National  Bank.  Resigning  this  employment  in  the  spring  of  1872, 
he  engaged  in  the  real  estate  business;  but  the  panic  of  1873  soon 
following,  he  decided  to  revert  to  banking.  In  the  autumn  of  that 
year  he  obtained  a  position  in  the  First  National  Bank,  with  which 
he  has  since  been  connected.  For  many  years  he  filled  the  posi- 
tion of  discount  clerk,  and  in  1891  was  elected  assistant  cashier. 


ELBRIDGE  G.  KEITH 

Elbridge  G.  Keith,  son  of  Martin  and  Betsy  Keith,  was  bom 
at  Barre,  Vermont,  on  July  16,  1840.  He  received  his  education 
at  Barre  Academy  and  Newbury  Seminary.  When  seventeen 
years  of  age  he  removed  to  Chicago,  and  in  1858  entered  the 
employ  of  Keith,  Faxon  &  Co.  Seven  years  later  he  became  a 
member  of  the  firm  of  Keith  Brothers  in  the  wholesale  hat,  cap, 
and  millinery  trade,  and  subsequently,  in  1883,  the  senior  partner 
of  Keith,  Benham  &  Dezendorf. 

In  1884,  upon  the  organization  of  the  Metropolitan  National 
Bank,  in  the  promotion  of  which  he  had  been  exceedinglyactive, 
Mr.  Keith  was  elected  to  its  presidency,  and  served  in  this 
capacity  during  the  entire  period  of  its  existence.  In  1875  he  was 
president  of  the  Young  Men's  Christian  Association;  in  1883, 
president  of  the  Union  League  Club;  in  1889-90,  president  of  the 
Chicago  Clearing  House;  in  1891,  president  of  the  Chicago 
Bankers'  Club;  in  1892,  president  of  the  Chicago  Commercial 
Club,  and  has  been  a  member  of  the  Chicago  Clearing  House 
Committee  from  1894  until  the  present  date.  Upon  the  consoli- 
dation of  the  Metropolitan  National  Bank  with  the  First  National 
Bank,  he  was  elected  to  the  directorate  of  the  latter  institution, 
and  at  the  same  time  accepted  the  presidency  of  the  Chicago 
Title  &  Trust  Company. 

Mr.  Keith  has  held  only  one  office  of  public  trust.  He  was  a 
member  of  the  Board  of  Education  for  several  years,  and  vice- 
president  of  that  body  from  1879  to  1884. 


MAX    MAY 

Max  May  was  born  at  Darmstadt,  Germany,  on  July  3,  1861. 
After  a  preliminary  training  of  five  years  in  various  banking 
houses  in  his  native  country,  he  came  to  America,  in  1884,  and 
thereupon  entered  the  employ  of  the  Union  National  Bank  as 
foreign  correspondent.    In  1892  he  was  selected  to  be  chief  of  the 


Biographical  i8i 


foreign  department  in  the  Atlas  National  Bank,  where  he  contin- 
ued until  1896.  At  that  date  he  returned  to  the  Union  National 
Bank  as  manager  of  the  same  department.  Upon  the  consolida- 
tion of  that  institution  with  the  First  National  Bank,  in  September, 
1900,  he  was  appointed  assistant  manager  of  the  foreign  exchange 
department  of  the  latter. 

NELSON  MORRIS 

Nelson  Morris  was  born  at  Hechingen,  Germany,  on  January 
21,  1839.  At  the  suggestion  of  an  uncle  who  had  already  emi- 
grated, he  came  to  this  country  in  1852.  Once  on  this  side  of  the 
ocean,  he  gradually  wandered  westward  until  he  arrived  in  Chi- 
cago. Reaching  here  in  1854,  he  obtained  employment  in  the  old 
Sherman  Stock  Yards  at  the  monthly  salary  of  $5,  room  and 
board.  By  the  exercise  of  economy  and  thrift,  he  succeeded  in 
accumulating  a  small  capital.  As  soon  as  conditions  warranted, 
about  two  years  after  his  arrival  in  town,  he  began  business  on  his 
own  account.  While  making  this  start  for  himself,  he  was  still 
partially  employed  by  others,  but  declined  an  offer  of  $100  per 
month  for  his  entire  time,  preferring  to  be  his  own  master. 

At  the  outbreak  of  the  Civil  War,  Mr.  Morris  was  in  comfort- 
able circumstances.  He  already  commanded  considerable  capital, 
and  had  begun  to  slaughter  cattle — thus  participating  in  the  founda- 
tion of  the  great  packing  industry  at  Chicago.  About  this  time  he 
entered  into  two  contracts  with  the  government  to  supply  20,000 
head  of  cattle  for  army  use.  During  the  next  few  years  his  busi- 
ness flourished.  In  1873  the  volume  of  annual  transactions  aggre- 
gated $11,000,000.  In  1874  he  formed  a  partnership  with  Isaac 
vVaixel,  under  the  name  of  Morris  &  Waixel,  but  eventually  the 
firm  became  known  as  Nelson  Morris  &  Co.  Their  plant,  which 
was  among  the  first  packing  houses  opened  and  operated  at  the 
Union  Stock  Yards,  has  so  grown,  with  the  extension  of  the 
domestic  and  foreign  trade,  that  it  now  consists  of  about  forty 
buildings,  covering  thirty  acres  of  land,  with  a  daily  killing 
capacity  of  5,000  cattle,  10,000  hogs,  10,000  sheep,  and  1,000  calves. 
They  likewise  own  and  operate  two  very  large  concerns,  one  at 
East  St.  Louis  and  the  other  at  South  St.  Joseph,  Missouri.  These 
establishments  transact  more  than  §75,000,000  of  business  yearly — 
a  result  attained  only  by  virtue  of  the  highest  organization,  the 
shrewdest  insight,  and  the  keenest  knowledge  of  markets.  The 
house  owns  about  2,000  refrigerator  and  freight  cars,  and  has 
established  two  hundred  large  branches  in  the  principal  cities  of 
the  United  States  and  Europe. 

Nelson  Morris  is  also  among  the  largest  cattle  and  ranch 
owners  in  the  country.    One  of  his  enterprises  is  an  extensive 


1 82   The  First  National  Bank  of  Chicago 


system  of  ranches  for  the  breeding  of  cattle.  The  Texas  ranch 
comprises  nearly  300,000  acres,  while  another  in  Indiana  contains 
30,000  acres,  and  there  is  another  in  Nebraska  almost  as  extensive. 

As  might  naturally  be  expected,  Mr.  Morris  has  been  associ- 
ated in  numerous  other  enterprises.  He  participated  in  the 
organization  of  the  Stock  Yards  banking  system,  and  is  a  director 
in  several  of  the  financial  institutions  doing  business  in  that 
district.  In  1872  he  was  elected  a  director  of  the  First  National 
Bank,  on  the  board  of  which  he  has  since  then  continuously 
served.  In  this  position  the  services  he  has  rendered  have  been 
distinguished  by  prudence,  conservatism,  and  ability.  To  the 
prosperity  of  the  bank  he  has  materially  contributed. 

Mr.  Morris  is  thoroughly  American  in  his  views  and  instincts; 
a  man  of  kindly  disposition,  and  generally  respected  as  of  a  strong 
and  energetic  nature. 


SAMUEL  M.   NICKERSON 

To  the  student  of  character  the  career  of  a  pioneer  in  any 
department  of  human  activity  is  peculiarly  an  object  of  admir- 
ation. Enterprise  and  energy  are  the  distinguishing  traits  of  the 
leaders  of  men.  Chicago,  by  reason  of  its  rapid  growth,  has  been 
the  field  during  the  past  sixty  years  for  the  development  of  a  host 
of  these  master  minds,  who  have  dreamed  not  in  vain,  but  under 
the  inspiration  of  their  genius  achieving  phenomenal  success, 
have  vanquished  every  obstacle,  and  won  the  laurel  wreath  at 
the  hands  of  their  grateful  contemporaries.  Of  this  group  the 
veteran  bankers,  by  virtue  of  their  high  personality,  and  the  ines- 
timable value  of  their  services,  occupy  the  first  ranks;  and  among 
them  the  subject  of  the  present  sketch  is  at  the  forefront. 

On  June  14,  1830,  there  was  born  to  Ensign  Nickerson  and 
his  wife,  Rebecca  Mayo  Nickerson,  then  residing  at  Chatham, 
Massachusetts,  a  son,  who  in  due  course  received  the  baptismal 
name  of  Samuel  Mayo.  Poor  in  worldly  goods,  and  not  blessed 
with  a  high  degree  of  education,  as  measured  by  the  standard 
of  the  schools,  this  humble  couple  nevertheless  appreciated  the 
value  of  sound  intellectual  training,  and  determined  to  afford  their 
children,  so  far  as  possible,  the  advantages  which  they  themselves 
had  not  in  their  youth  been  able  to  enjoy.  With  these  motives  the 
family  removed,  in  1837,  to  Boston.  The  boy,  Samuel,  thenceforth 
diligently  applying  himself  for  several  years  to  the  pursuit  of  knowl- 
edge, attended  first  the  public  schools  of  the  city,  and  subsequently 
the  academy  at  New  Hampton,  New  Hampshire.  This  period 
of  life  was  interspersed  with  brief  intervals  of  vacation  and  labor 
on  the  old  farm. 

Upon  the  conclusion  of  his  school  days,  in  1847,  Samuel,  chiefly 


Biographical  183 


dependent  upon  his  own  industry,  and  eager  to  face  the  vicissitudes 
of  maturer  years,  was  attracted  by  the  apparent  advantages  offered 
to  young  men  in  the  South.  Incidentally  his  elder  brother,  it  should 
be  stated,  had  already  settled  at  Appalachicola,  Florida,  where  he 
owned  a  general  store.  An  offer  of  employment  in  this  establish- 
ment being  accepted  as  a  temporary  expedient,  Samuel,  high  in 
hopes  and  full  of  projects,  sailed  on  a  sea-going  packet  ultimately 
bound  for  the  distant  land  of  his  dreams.  In  due  season  he  arrived ; 
entering  at  once  upon  his  new  duties,  he  labored  arduously  for  three 
years.  Then  ambitious  to  make  more  rapid  progress,  he  succeeded 
in  starting  a  similar  venture  on  his  own  account.  Some  northern 
friends,  having  become  interested,  advanced  him  the  requisite 
amount  of  capital,  which  he  judged  necessary  to  supplement 
his  own  hard-earned  savings.  For  some  years  he  struggled  with 
varying  fortune,  now  hopeful,  again  discouraged,  and  sometimes 
uncertain  of  the  results  which  he  might  achieve,  until  at  length 
in  one  fatal  hour  his  entire  stock  was  destroyed  by  fire.  Apparently 
ruined,  but  still  full  of  pluck  and  unshaken  in  his  aspirations, 
his  principal  thought  was  to  sustain  his  good  reputation.  There 
was  then  some  outstanding  indebtedness  against  him;  these 
claims  being  at  once  compromised,  he  was  technically  relieved 
of  all  obligations;  but  to  him  this  solution  was  not  by  any  means 
satisfactory;  for  within  a  few  years,  when  prosperity  was  again 
smiling  upon  him,  he  paid  every  one  of  his  former  creditors  what- 
ever balance  still  remained  due  them,  as  he  conceived  it,  to  make 
one  hundred  cents  on  the  dollar. 

The  next  step  taken  by  Samuel  M.  Nickerson  was  the  turning- 
point  in  his  life.  In  1858  he  removed  to  Chicago.  Again  borrow- 
ing the  necessary  funds  on  the  security  of  his  good  name  from 
some  persons  who  yet  had  faith  in  his  ability,  he  began  anew  for 
himself  in  this  busy  center  of  the  West.  This  time  he  engaged 
in  distilling  high  wines  and  alcohol;  speedily  reaping  the  rewards 
of  his  labors,  he  was  soon  able  to  lend  an  ear  to  other  business  pro- 
jects. When,  in  1862-1863,  the  feasibility  of  establishing  a  national 
bank  was  the  topic  of  discussion  among  the  members  of  a  little 
coterie  of  Chicago  capitalists,  Mr.  Nickerson  was  an  ardent  advo- 
cate of  the  project.  He  subscribed  liberally  to  the  stock  of  the 
First  National  Bank,  assisted  materially  in  its  organization,  and 
was  elected  one  of  the  first  board  of  directors.  Almost  imme- 
diately he  was  chosen  vice-president  of  the  institution,  and  in 
1867,  upon  the  death  of  President  Aiken,  was  selected  as  his  suc- 
cessor. For  twenty-four  years  he  continuously  served  in  this 
capacity;  resigning  in  1891,  as  he  thought  finally,  he  was  allowed 
to  enjoy  only  a  few  years  of  respite;  for  in  1897  he  was  again 
called  to  take  the  helm;  but  three  years  later  once  more  suc- 
ceeded in  retiring  from  his  post. 

In  1864  Mr.  Nickerson  abandoned  the  distilling  business,  and 


184    The  First  National  Bank  of  Chicago 

in  the  same  year  was  chosen  president  of  the  Chicago  City  Horse 
Railroad  Company,  in  which  position  he  displayed  during  his  term 
of  seven  years  distinguished  executive  ability.  In  1867  he  was 
the  chief  force  in  the  organization  of  the  Union  Stock  Yards 
National  Bank  (now  the  National  Live  Stock  Bank),  was  its  presi- 
dent for  six  years,  and  long  afterwards  a  director.  He  has  also 
been  deeply  interested  in  many  other  important  commercial,  rail- 
way, and  financial  enterprises. 

The  management  and  direction  of  the  affairs  of  the  First 
National  Bank,  however,  gradually  absorbed  the  entire  attention 
of  Mr.  Nickerson;  as  this  institution  rapidly  developed  under 
the  inspiration  of  himself  and  his  associates  it  exacted  more 
and  more  devotion  on  their  part.  For  many  years  he  was  the 
central  figure  in  its  guidance;  to  it  he  zealously  gave  the  best 
portion  of  his  life,  undisturbed  by  anything  which  did  not  con- 
tribute to  its  advancement,  or  was  not  incidental  to  its  welfare. 
During  his  incumbency  of  the  presidency  the  institution  passed 
through  many  crises,  not  only  in  its  own  history,  but  in  that  of  the 
community  with  which  it  had  become  so  closely  identified.  Thrice 
Mr.  Nickerson  advised  in  the  erection  of  a  banking  structure: 
first  when  the  old  building  at  the  southwest  corner  of  State  and 
Washington  streets  was  erected,  again  upon  its  restoration  after 
the  great  fire,  and  finally  when  the  edifice  at  present  occupied  was 
being  planned  and  completed. 

Mr.  Nickerson's  personality,  as  viewed  in  the  days  of  his 
greatest  activity,  was  most  estimable.  Democratic  in  his  habits, 
genial  in  disposition,  and  attentive  to  every  reasonable  request,  he 
won  the  admiration  of  all  those  who  had  occasion  to  know  him. 
Courteous  in  every  emergency,  and  gracious  under  the  most  unex- 
pected contingencies,  he  neither  sought  renown  nor  evaded  his 
just  obligations.  His  home  life  has  been  ideal.  Fortunate  in  the 
science  of  amassing  wealth,  he  has  regarded  money  more  as 
a  means  than  an  end.  In  December,  1858,  Mr.  Nickerson 
married  Mathilda,  daughter  of  Isaac  Crosby,  of  Brewster,  Massa- 
chusetts. In  his  wife  he  found  not  only  a  helpmate  but  likewise 
an  associate  in  the  enjoyment  of  those  pastimes  to  which  he  is 
devoted.  Mrs.  Nickerson  is  well  known  for  her  accomplishments 
and  personal  charms.  Their  original  home  fell  a  prey  to  the 
flames  in  1871;  but  ten  years  later  a  beautiful  house  was  built 
at  the  corner  of  Cass  and  Erie  streets.  Art  has  had  two  devotees 
in  Mr.  and  Mrs.  Nickerson.  During  their  long  residence  in 
Chicago  their  private  gallery  of  paintings  was  renowned  as 
containing  an  exceedingly  fine  and  valuable  collection.  Taste  and 
wealth  combined  to  render  their  selection  of  pictures  in  many 
respects  unique;  the  best  masters  were  here  represented.  For 
several  years  Mr.  Nickerson  also  acted  as  director  of  the  Art 
Institute,  to  which  he  gladly  devoted  many  hours  of  service  and  a 


Biographical 


'S 


liberal  amount  of  funds.  Finally,  upon  his  departure  from  this  city, 
he  donated  to  it  his  splendid  collection  of  paintings,  engravings, 
Chinese  and  Japanese  porcelain,  jades  and  lacquers,  ivory  carv- 
ings, arms,  and  many  other  objects  of  art. 

In  1900  Mr.  and  Mrs.  Nickerson  removed  to  New  York,  where 
their  one  child,  Roland  C.  Nickerson,  also  resides.  Since  this 
change  of  residence  Mr.  Nickerson  has  not  been  engaged  in  active 
business.  He  spends  about  six  months  of  the  year  in  the  metrop- 
olis, and  the  remainder  of  the  time  at  East  Brewster  on  Cape  Cod. 


ORVILLE  PECKHAM 

Orville  Peckham  was  born  on  October  30,  1846,  at  Newport, 
Rhode  Island;  graduated  from  Brown's  University  in  1867;  was 
admitted  to  the  bar  of  Rhode  Island  in  i86g,  and  subsequently  to 
that  of  Illinois  upon  his  removal  to  this  state.  From  the  autumn 
of  i86g  until  the  spring  of  1872  he  engaged  in  his  profession  at 
Providence,  Rhode  Island;  then  in  company  with  Edward  O. 
Brown,  he  came  to  Chicago,  a  partnership  for  the  practice  of  law 
being  immediately  formed,  which  still  exists  under  the  firm  name 
of  Peckham,  Brown  &  Packard.  Without  severing  this  connec- 
tion, Mr.  Peckham  was  chosen  special  attorney  of  the  First  National 
Bank,  on  January  16,  1879,  and  since  that  date  his  time  and  energy 
have  practically  been  exclusively  devoted  to  the  affairs  of  that 
institution.  From  1888  to  i8go,  and  again  in  1891-1892  he  likewise 
served  as  a  member  of  the  board  of  directors. 


EUGENE  S.   PIKE 

Eugene  S.  Pike,  son  of  Daniel  Harmon  and  Jerusha  Hartwell 
Pike,  was  born  at  Perry,  Lake  County,  Ohio,  on  October  5,  1835. 
His  lineage  is  originally  English,  his  ancestors  on  both  sides  hav- 
ing arrived  in  New  England  about  1635.  The  lad  lost  his  father 
at  an  early  age,  and  was  soon  compelled  to  earn  his  own  support. 
When  he  was  only  eleven,  his  mother  also  was  called  to  the  better 
world.  The  orphaned  boy  then  divided  his  time  between  work 
on  the  farm  in  summer  and  interrupted  courses  at  the  district 
school  in  winter.  His  one  dominant  ambition  was  to  secure  a 
college  education.  After  much  arduous  labor  in  obtaining  the 
preliminary  preparation,  and  two  years  spent  at  Kirtland  and 
Hiram  seminaries,  he  was  admitted  as  a  student  at  Antioch  Col- 
lege, where  he  remained  two  years. 

His  first  business  venture  was  in  dealing  in  fruit-trees,  and 


1 86    The  First  National  Bank  of  Chicago 


afterwards  in  importing  nursery  stock  from  France.  In  1861  he 
embarked  in  the  banking  and  brokerage  business  at  Painesville, 
Ohio,  where  he  attained  considerable  success  and  accumulated 
some  means.  Six  years  later  he  came  to  Chicago.  Perceiving 
at  once  the  great  future  of  real  estate,  he  invested  his  means  in 
ground  situated  in  the  business  district  of  the  south  division,  and 
little  by  little  built  houses  and  blocks  upon  this  property.  By  so 
doing  he  not  only  augmented  his  own  wealth,  but  contributed 
decidedly  to  the  improvement  and  development  of  the  city.  In 
this  sense  he  is  to  be  reckoned  as  one  of  its  public  benefactors. 

While  Mr.  Pike  has  turned  his  chief  attention  to  the  real 
estate  market,  he  has  not  by  any  means  been  inactive  in  other 
directions.  From  time  to  time  he  has  been  interested  in  horticul- 
ture. The  chief  distinction  which  he  has  won  has  been  in  the 
financial  world.  In  1885  he  was  elected  to  the  directory  of  the 
First  National  Bank,  on  which  he  has  since  then  uninterruptedly 
served.  He  is  also  trustee  of  the  Northwestern  Mutual  Life  In- 
surance Company.  During  the  World's  Fair  he  was  one  of  the 
directors  of  the  Columbian  Exposition  Company,  and  likewise  a 
member  of  the  Committee  of  Organization,  in  which  position  he 
rendered  most  efificient  service.  When  the  Manchester  Fire  As- 
surance Company  of  England  was,  in  1891,  establishing  a  branch 
in  the  United  States,  it  selected  him  as  one  of  its  three  trustees  in 
this  country. 

NORMAN  B.  REAM 

Norman  B.  Ream,  son  of  Levi  and  Highley  King  Ream,  was 
born  on  a  farm  in  Somerset  County,  Pennsylvania,  on  November 
5,  1844.  Originally  his  paternal  ancestors  had  migrated  from  Ger- 
many, and  his  maternal  ancestors  were  Scotch  and  English.  The 
lad  enjoyed  only  the  advantages  of  a  district  school,  supplemented 
by  a  course  in  a  normal  institute.  At  the  age  of  fourteen  he  him- 
self was  already  a  teacher  at  the  salary  of  seventeen  dollars  per 
month  ;  during  the  summer  season  he  worked  on  a  farm.  A  little 
later  he  embarked  in  business  as  a  photographer,  which  pursuit 
he  followed  until  seventeen  years  of  age. 

The  Civil  War  then  breaking  out,  young  Ream  went  out  as  a 
private,  in  the  fall  of  1861,  in  Company  H,85th  Pennsylvania  Vol- 
unteer Infantry.  With  his  regiment  he  took  part  in  McClellan's 
campaign  of  1862  ;  for  distinguished  action  in  battle  was  commis- 
sioned second  lieutenant  ;  soon  afterwards  won  promotion  to  a 
first  lieutenancy,  and  was  upon  two  different  occasions  severely 
wounded,  being  finally  incapacitated  from  further  service. 

He  then  returned  to  Pennsylvania  for  a  brief  time,  entered  a 
commercial  college  at  Pittsburg,  and  soon  was  employed  as  clerk 


Biographical  187 


in  a  general  store  at  Harnedsville.  In  September,  1866,  the  op- 
portunities of  the  West  having  attracted  his  attention,  he  moved 
to  Princeton,  Illinois,  where  he  served  as  clerk  in  a  dry  goods 
house,  which  he  afterwards  purchased.  Subsequently  he  settled 
in  Osceola,  Iowa,  where  he  engaged  in  the  grain  and  agricultural 
implement  trade. 

In  1871,  just  before  the  great  fire,  Mr.  Ream  removed 
to  Chicago,  and  forming  an  association  with  Samuel  Coffman, 
under  the  name  of  Coffman  &  Ream,  started  in  the  live  stock 
commission  business.  In  this  venture  prosperity  smiled  upon 
him,  and  money  was  accumulated.  In  1875  he  joined  the  Chicago 
Board  of  Trade.  In  the  last-mentioned  year  his  firm  became 
known  as  George  C.  Ball  &  Company  ;  two  years  later  it  was  re- 
organized as  Norman  B.  Ream  &  Company.  Until  1884  Mr.  Ream 
devoted  his  time  and  attention  to  its  affairs.  He  about  this  time 
became  a  member  of  the  New  York  Stock  Exchange,  and  at  that 
date  withdrew  from  active  participation  in  the  gram  commission 
business;  although  he  retained  a  special  partnership  interest  in 
the  new  firm  of  W.  R.  Clark  &  Company,  then  formed,  until  1889, 
when  he  finally  retired  from  the  grain  business.  For  a  time  he 
was  vice-president  of  the  Call  Board. 

Aside  from  his  principal  occupation,  Mr.  Ream  has  ever  had 
other  important  interests.  In  i8go  he  was  chosen  a  member  of 
the  board  of  directors  of  the  First  National  Bank,  in  which  capa- 
city he  has  since  then  continuously  served.  He  has  been  an 
active  participant  in  many  of  the  large  building  operations  in 
Chicago,  among  which  is  the  Rookery  ;  he  has  been  a  director  of 
the  Illinois  Central  Railway,  and  likewise  in  more  recent  years 
has  been  identified  with  the  reorganization  of  the  Baltimore  & 
Ohio  Railroad,  in  which  property  he  is  now  interested;  he  is  also 
a  member  of  the  board  and  prominent  in  the  operations  of  the 
Erie  Railroad,  besides  having  an  important  part  in  many  other 
enterprises. 

GEORGE  T.  SMITH 

George  T.  Smith,  son  of  Thomas  P.  and  Dorothy  Ingalls 
Smith,  was  born  at  Providence,  Rhode  Island,  on  May  10,  1849. 
Together  with  his  parents  he  removed,  in  1857,  to  Lockport,  Illinois, 
and  subsequently,  in  1865,  to  Chicago.  His  early  education  was 
received  in  the  public  schools  of  Lockport,  and  afterward  at  East- 
man's Business  College  in  Poughkeepsie,  New  York.  As  soon  as 
his  course  of  instruction  had  been  completed  he  secured  a  posi- 
tion as  book-keeper  and  general  clerk  with  Spruance,  Preston  & 
Company,  with  whom  he  remained  eight  years.  When  twenty-four 
years  of  age  he  engaged  in  the  brokerage  business,  and  two  years 


1 88    The  First  National  Bank  of  Chicago 

later  formed  a  partnership  with  Henry  G.  Gaylord  under  the  firm 
name  of  Smith  &  Gaylord.  This  connection  lasted  only  two  years, 
since  which  time  Mr.  Smith  has  not  had  any  associate.  On  the 
Board  of  Trade  he  has  always  been  active;  in  1878-1879  he 
served  as  a  member  of  the  arbitration  committee;  in  1880-1881 
was  on  the  committee  of  appeals;  in  1884  was  elected  second 
vice-president,  and  in  1885  first  vice-president.  At  the  next  elec- 
tion and  five  years  later  he  might  have  been  chosen  president  of 
the  board,  but  because  of  his  varied  interests  and  his  frequent 
absence  from  the  city,  he  declined  this  distinction. 

Mr.  Smith  is  connected  with  numerous  important  enterprises. 
He  is  a  director  of  the  City  Railway  Company  of  Chicago,  the 
Diamond  Match  Company,  the  Equitable  Trust  Company  and 
several  other  corporations.  In  1899  he  was  elected  to  the  direc- 
torate of  the  First  National  Bank. 

RICHARD  J.  STREET 

Richard  J.  Street  was  born  at  Hamilton,  Canada,  on  November 
13,  1846.  At  the  age  of  fifteen  years  he  left  school  and  began 
active  life  in  the  employ  of  an  insurance  ofifice;  within  a  short 
time  he  was  made  book-keeper,  which  position  he  occupied  three 
years.  The  evident  advantages  of  Chicago  attracted  his  attention 
after  the  close  of  the  Civil  War,  and  he  came  hither,  arriving  in 
the  city  on  October  16,  1865.  The  following  day  he  secured  a 
place  in  the  First  National  Bank  as  a  messenger.  Since  that  time 
he  has  been  steadily  promoted.  In  1871  he  was  appointed  chief 
clerk,  in  1882  assistant  cashier,  and  finally,  on  June  30,  1891, 
cashier. 

WILLIAM  J.   WATSON 

William  J.  Watson,  son  of  James  V.  and  Elizabeth  M.  Watson, 
was  born  at  Philadelphia,  Pennsylvania,  on  March  26,  1843.  In 
that  city  he  resided  until  December  3,  1863.  Having  graduated 
in  June  of  that  year  from  the  Philadelphia  Central  High  School, 
he  removed  first  to  Battle  Creek,  Michigan,  and  subsequently,  in 
the  spring  of  1870,  to  St.  Louis,  Missouri.  Here  he  served  as  the 
Western  representative  of  the  Middleton  Car  Spring  Company  of 
Philadelphia,  and  still  remaining  in  the  same  employ  he  came  to 
Chicago,  on  May  i,  1873.  In  1890  he  was  elected  president  of  the 
company.  In  1884  he  organized  the  Buda  Foundry  &  Manu- 
facturing Company;  in  1886  the  Hewitt  Manufacturing  Company; 
and  in  1887  the  Fort  Madison  Iron  Works  Company,  serving  as 
president  of  these  different  corporations  until  1899-1900,  the  date 
of  his  retirement  from  all  active  business  except  that  of  banking. 


Biographical  189 


Mr,  Watson  was  long  identified  with  the  Metropolitan  National 
Bank  and  the  American  Trust  &  Savings  Bank.  In  the  first 
named  institution  he  served  as  a  director  continuously,  from 
January  i,  1885,  and  as  vice-president  from  January  i,  1895,  until 
the  close  of  its  career.  Prior  to  the  last-mentioned  date  he  was 
also  a  director  in  the  American  Trust  &  Savings  Bank,  of  which 
he  was  one  of  the  incorporators.  Upon  the  absorption  of  the 
Metropolitan  National  Bank  by  the  First  National  Bank  he  was 
chosen  a  director  in  the  latter  institution. 


FRANK  O.  WETMORE 

Frank  O.  Wetmore  was  born  at  Kalamazoo,  Michigan,  on 
November  12,  1867.  Shortly  thereafter  his  parents  removed  to 
Adrian,  Michigan,  where  he  attended  school  until  1883.  In  the 
spring  of  that  year  he  began  work  in  the  hardware  store  of  his 
father.  In  1886  he  came  to  Chicago,  secured  employment  in  the 
First  National  Bank,  and  worked  in  various  capacities  until  1891; 
at  that  time  he  was  appointed  "general  man,"  which  position  he 
occupied  till  1897.  At  this  latter  date  he  was  elected  auditor  of 
the  institution. 


JAMES  D.   WOLEY 

James  Decker  Woley  was  born  on  February  10,  1859,  at  Ma- 
quoketa,  Iowa,  and  graduated  from  Hamilton  College,  Clinton, 
New  York,  with  the  class  of  1882.  He  came  to  Chicago  soon  after- 
ward, and  immediately  entering  the  Union  College  of  Law,  finished 
his  course  and  was  admitted  to  the  bar  in  1884.  Within  a  short 
time  he  was  employed  in  the  legal  department  of  the  First  Na- 
tional Bank,  and  subsequently  was  chosen  its  assistant  attorney. 


OTTO  YOUNG 

Otto  Young  was  born  at  Elberfeld,  Germany,  on  December 
20,  1844.  His  parents  were  in  good  circumstances.  The  lad  in 
early  years  attended  the  common  schools,  and  was  looking  for- 
ward to  a  university  education  when,  in  1858,  his  father  died.  This 
event  turned  the  course  of  his  career.  Having  already  some  rela- 
tives in  New  York,  he  came  at  once  to  America.  For  the  next 
eighteen  months  he  continued  his  schooling;  then  seeking  some 
employment  he  at  first  obtained  a  clerkship  in  a  store,  at  a  weekly 
salary  of  $3.  After  the  Civil  War  he  started  on  his  own  account  in  the 


190    The  First  National  Bank  of  Chicago 

fancy  goods  and  jewelry  trade;  and  in  1867  traveled  throughout 
the  West  for  a  New  York  house.  On  these  trips  he  happened  to 
come  to  Chicago,  and  by  a  coincidence,  was  here  during  the  days 
of  the  great  fire.  Returning  East  to  close  up  his  affairs,  he  again 
came  to  this  city  early  in  1872,  with  the  intention  of  making  the 
place  his  permanent  home.  He  soon  opened  a  wholesale  jewelry 
house  at  149-151  State  street,  where  it  is  still  located.  For  some 
years  he  devoted  himself  principally  to  the  conduct  of  this  busi- 
ness. In  1886,  when  The  Fair  was  incorporated,  with  a  capital 
stock  of  $200,000,  Mr.  Young  purchased  a  half  interest  and  assumed 
the  general  management  of  the  establishment.  Two  years  later 
its  capital  was  fixed  at  $500,000,  and  again,  in  1890,  it  was  increased 
to  $1,000,000.  In  due  course  all  the  buildings  originally  occupied 
were  removed,  and  in  their  stead  the  present  structure  was  erected. 
The  Fair  is  now  one  of  the  largest  institutions  of  the  kind  in 
the  United  States. 

Mr.  Young  has  devoted  all  his  time  and  attention,  unremit- 
tingly and  without  stint,  to  the  advancement  of  business  interests. 
He  was  a  director  in  the  Columbian  Exposition  Company,  and  the 
chairman  of  its  Committee  on  Ways  and  Means;  in  this  capacity  he 
was  chiefly  instrumental  in  raising  the  first  $5,000,000  for  the 
World's  Fair,  thus  insuring  its  success  at  a  critical  juncture.  In 
1900  he  was  elected  a  director  of  the  First  National  Bank,  and  has 
likewise  served  for  some  time  upon  the  directorate  of  the  Chicago 
City  Railway  Co. 


APPENDICES 


APPENDICES 

LIST  OF  MEMBERS  OF  THE  BOARD  OF  DIRECTORS 
OF  THE  FIRST  NATIOX.^L  BANK  OF  CHICAGO 
FROM   ITS   ESTABLISHMENT   IN    1863  TO    1902 


*tAiken,  Edmund,  1 863-1 867. 

Allen,  Benjamin  F.,  1871-1874. 
*tAllerton,  Samuel  W.,  1863- 
: [Barker,  John  H.,  1900. 
::BartIett,  Adolphus  C,  1902- 
:;Boulton,  George  D.,  1897- 
*'Bronson,  Tracy   J.,  1863-1867. 
fBrown,  William  L.,  1900- 
Carpenter,  Augustus  A.,  1883- 

1900. 
Conover,   Charles    H.,    1900- 
1902. 
tCrosby  Isaac,  1876-1877. 
fCrumbaugh,  Frederick,  1869- 

1872. 
JCummings,  D.  Mark,  1900- 
*Fargo,  James  C,  1863. 
tForgan,  David  R.,  igoo- 
jForgan,  James  B.,  1892- 
Gage,  Lyman  J.,  1870-1897. 
Gray,  Franklin  D.,  1866-1899, 
tHall,  Elbridge  G..  1863-1870. 
♦JHoward,  Samuel  G.  D.,  1863- 

1867. 
*tHutchinson,      Benjamin     P., 

1863- 1 867. 
JKeith,  Elbridge  G.,  1902- 


fLawrence,  Edward  F.,  1870- 

1876,  1877-1898. 
fLewis,  Henry  B.,  1867-1869. 
JMorris,  Nelson,  1872- 
Nickerson,  Roland   C,  1892- 
1900. 
*JNickerson,  Samuel  M.,  1863- 
Peckham,  Orville,  1888-1890, 
1891-1892. 
JPike,  Eugene  S.,  1885- 

Porter,  Henry  H.,  1868-1891. 
JReam,  Norman  B.,  1890- 
*tRice,  Byron,  1863-1868. 
*tSherman,  John  B..  1 863-1867. 
tSinger,  Horace  M.,  1879-1888. 
::Smith,  George  T.,  1899- 
::Spoor,  John  A.,  1900- 
jSymonds,    Henry    R.,    1882- 

1892. 
tTalcott,  Mancel,  1867-1878. 
fThompson,      Daniel,      1869- 
1871. 
Walker,  George  C,  1867-1S69. 
JWatson,  William  J.,  1902- 
fWebster,  George,  1867- 1870. 
fWilmarth,   Henry   M.,    1874- 

1885. 
JYoung,  Otto,  1900- 


♦Member  of  original  board  of  directors. 
tMember  of  present  board. 
TDeceased. 


193 


194  The  First  National  Bank  of  Chicago 


LIST  OF  OFFICERS   OF  THE  FIRST  NATIONAL   BANK 

PRESIDENTS 

Edmund  Aiken,  1863-67. 
Samuel  M.  Nickerson,  1867-1891. 
Lyman  J.  Gage,  1891-1897. 
Samuel  M.  Nickerson,  1897-1900. 
James  B,  Forgan,  1900- 

VICE-PRESIDENTS 

James  C.  Fargo,  1863. 
Samuel  M.  Nickerson,  1863-1867. 
Franklin  D.  Gray,  1867-1882. 
Lyman  J.  Gage,  1882-1891. 
Henry  R.  Symonds,  1891-1892. 
James  B.  Forgan,  1892-1900. 
David  R.  Forgan,  1900- 
George  D.  Boulton,  1900- 
Howard  H.  Hitchcock,  1902- 

SECOND   VICE-PRESIDENTS 

Henry  M.  Kingman,  1891. 
James  B.  Forgan,  1892. 
George  D.  Boulton,  1897-1900 

CASHIERS 

Edward  E.  Braisted,  1863-1866. 
Cornelius  R.  Field,  1866-1868. 
Lyman  J.  Gage,  1868-1882. 
Henry  R.  Symonds,  1882-189I. 
Richard  J.  Street,  1891- 

assistant  cashiers 

Augustus  W.  Wheeler,  1864-1866. 
Charles  J.  Schmidt,  1866-1868. 
Henry  R.  Symonds,  1869-1882. 
Henry  M.  Kingman,  1882-1891. 
Holmes  Hoge,  1891- 
August  Blum,  1900- 
Edward  Dickinson,  1902- 
Frank  E.  Brown,  1900- 
Charles  N,  Gillett,  1900- 


Appendices  195 


SECOND  ASSISTANT  CASHIERS 

Richard  J.  Street,  1882-1891. 
Frank  E.  Brown,  1893-1900. 

AUDITOR 

Frank  O.  Wetmore,  1897- 

MANAGERS,  FOREIGN  EXCHANGE  AND  BOND  DEPARTMENT 

George  D.  Boulton,  1891-1897. 
Emile  K.  Boisot,  1897-1901. 

ASSISTANT   MANAGER 

John  E.  Gardin,  1897-1901. 

MANAGER  FOREIGN  EXCHANGE  DEPARTMENT 

John  E.  Gardin,  1901- 

ASSISTANT  MANAGER 

Max  May,  1901- 

MANAGER  BOND   DEPARTMENT 

Emile  K.  Boisot,  1901- 

ATTORNEY 

Orville  Peckham,  1879- 

ASSISTANT  ATTORNEY 

James  D.  Woley,  1900- 

NOTE  —  In  1900  two  vice-presidents  and  four  assistant 
cashiers  were  elected;  in  1902,  after  the  absorption  of  the  Metro- 
politan National  Bank,  an  additional  vice-president  and  one  more 
assistant  cashier  were  chosen. 

In  1901  the  foreign  exchange  and  bond  business  were  sep- 
arated into  two  distinct  departments. 


196   The  First  National  Bank  of  Chicago 


STATEMENT  SHOWING  DIVIDENDS  DECLARED  BY 
THE  FIRST  NATIONAL  BANK  OF  CHICAGO  FROM 
ITS  FOUNDATION  TO  DATE 


May 

May 

Nov. 

May 

Jan. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

June 

Dec. 

Mar. 

June 

Sept, 

Sept, 

Dec. 


DECLARED. 
2,  1864 
2,  1864 
15,  1864 
I,  1865 
I,  1866 
1866 
1866 
1867 
1867 
1868 
1868 
1869 
1869 
1870 
1870 
I87I 
1 87 1 
1872 
1872 
1873 
1873 
1874 
31.  1874 

30,  1875 
1875 
1876 
1876 
1877 
1877 
1878 
1878 
1879 

31.  1879 
31,  1880 
30,  1880 

10,  1880 

30,  1880 

31,  1880 


30. 
31. 
30. 
31. 
30. 
31. 
30. 
31. 
30. 
31. 
30. 
31. 
30, 
31. 
30. 
31. 
30. 


31. 
30, 
31. 
30. 
31. 
30, 
31. 
30, 


FOR  WHAT                    RATE  PER 

TIME. 

CENT. 

Annual 

16 

Extraordinary 

5* 

Semi-Annual 

10 

Semi-Annual 

10 

Semi-Annual 

10 

Semi-Annual 

10 

Semi-Annual 

10 

Semi-Annual 

5 

Semi-Annual 

5 

Semi-Annual 

5 

Dividend  passed 

Dividend  passed 

Dividend  passed 

Dividend  passed 

Semi-Annual 

Semi-Annual 

Dividend  passed 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Annual 

Semi-Anuual 

Semi-Annual 

Quarterly 

3 

Quarterly 

3 

Extraordinary 

20 

Quarterly 

3 

Quarterly 

3 

*  To  Subscribers  of  first  $300,000  of  stock. 


Appendices 


197 


DATE  DECLARED. 


Mar.  31 
June  30, 
Sept.  30, 
Dec.  31 
Mar.  31, 
April  25, 
April  29, 
April  29, 
May  6, 
June  30, 
Sept.  30, 
Dec.  31 
Mar.  31. 
June  30, 
Sept.  30, 
Dec.  31 
Mar.  31 
June  30, 
Sept.  30, 
Dec.  31 
Mar,  31. 
June  30, 
Sept.  30 
Dec.  31 
Mar.  31 
June  30, 
Sept.  30, 
Dec.  31 
Mar.  31. 
June  30, 
Sept.  30 
Dec.  31 
Mar 
June  30, 
Sept.  30, 
Dec.  -- 
Mar. 
June 
Sept. 
Dec. 
Mar. 
June 
Sept. 
Dec. 


31. 
31. 
30. 
30, 
31. 
31. 
30. 
30, 

31. 
At 


881 
[881 
882 
882 
882 


\2 
882 
882 
882 


883  - 
884 

884  - 
884 
884  - 


887 


889  -     -     -     - 

-ig  -    -    -    - 
)0    -    -    -    ■ 
p  - 
:890   -   -   -   ■ 

890  -   -   -   - 

rmination  of  business 


FOR  WHAT 

RATE  PER 

TIME. 

CENT. 

-    Quarterly 

3 

Quarterly 

3 

-     Quarterly 

3 

Quarterly 

3 

-     Quarterly 

3 

Special 

100 

-    Special 

100 

Special 

50 

-     Final 

44.12* 

Two  months 

2 

-    Quarterly 

2 

Quarterly 

2 

-     Quarterly 

2 

Quarterly 

2 

-     Quarterly 

^% 

Quarterly 

2Vz 

-     Quarterly 

2'A 

Quarterly 

2K 

-    Quarterly 

2>^ 

Quarterly 

^Yz 

-     Quarterly 

lYz 

Quarterly 

2^ 

-     Quarterly 

1% 

Quarterly 

^Yz 

-    Quarterly 

2>^ 

Quarterly 

2>^ 

-     Quarterly 

2>^ 

Quarterly 

iY. 

-     Quarterly 

2Yz 

Quarterly 

2K 

-     Quarterly 

2>^ 

Quarterly 

-i-Yz 

-     Quarterly 

2Yz 

Quarterly 

^Yz 

-    Quarterly 

2>^ 

Quarterly 

■2.Yz 

-     Quarterly 

2>^ 

Quarterly 

1'A 

-     Quarterly 

2>^ 

Quarterly 

3 

-     Quarterly 

3 

Quarterly 

3 

-    Quarterly 

3 

Quarterly 

3 

under  first  charter. 

198   The  First  National  Bank  of  Chicago 


Dec. 
Mar. 


ii 

I  - 
I 
ii  - 

i2 


DATE  DECLARED. 

Mar.  31,  I 
June  30,  I 
Sept.  30,  I 

31.  I 

31.  I 
June  30,  1892  - 
Sept.  30,  1892 
Dec.  31,  1892  - 
Mar.  31,  1893 
June  30,  1893  - 
Sept.  30,  1893 
Dec.  31,  1893  - 
Mar.  31,  1894 
June  30,  1894  - 
Sept.  30,  1894 
Dec.  31,  1894  - 
Mar.  31,  1895 
June  30,  1895  - 
Sept.  30,  1895 
Dec.  31,  1895  - 
Mar.  31,  1896 
June  30,  1896  - 
Sept.  30,  1896 
Dec.  31,  1896  - 
Mar.  31,  1897 
June  30,  1897  - 
Sept.  30,  1897 
Dec.  31,  1897  - 
Mar,  31,  1898 
June  30,  1898  - 
Sept.  30,  1898 
Dec.  30,  1898  - 
Mar.  30,  1899 
June  30,  1899  - 
Sept.  30,  1899 

31,  1899  - 

31,  1900 
June  30,  igoo  - 
Sept.  30,  1900 
Dec.  31,  1900  - 
Mar.  31,  1901 
June  30,  1901  - 
Sept.  30,  1901 
Dec.  31,  1901  - 
Mar.  31,  1902 


Dec. 
Mar. 


FOR  WHAT 
TIME. 

RATE  PER 
CENT. 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Quarterly 

3 

Appendices  199 

Statements  of  Condition  at  Different  Periods 
FROM   1863  ^^  1902 

STATEMENT  OF   CONDITION 
September  30,  1863 

ASSETS 

Loans  and  discounts     -------     $149,650.00 

United  States  bonds 91,000.00 

Cash  resources: 

Due  from  banks  -  -  -  -  $109,773.73 
Checks  for  clearing  house  -  -  68,597.12 
Cash  on  hand       .        -        -        -  60,828.13      239,198,98 

$479,848.98 

LIABILITIES 

Capital  stock $205,000.00 

Undivided  profits 1.75949 

Deposits 273,089.49 

S479.848.98 

statement  of  condition 

December  30,  1863 

ASSETS 

Loans  and  discounts $276,987.53 

United  States  bonds 176,000.00 

Furniture  and  fixtures 201.62 

Cash  resources: 

Due  from  banks  .  -  -  -  $64,141.73 
Checks  for  clearing  house  -        -  89,303.09 

Cash  on  hand 130,251.32 

Due  from  directors     -        -       -  6,000.00      289,696.14 

$742,885.29 


liabilities 


Capital  stock $300,000.00 

Undivided  profits 11,699.49 

Due  United  States  Treasurer 195,046.72 

Deposits -        -        -  236,139.08 

$742,885.29 


aoo  The  First  National  Bank  of  Chicago 


STATEMENT  OF  CONDITION 
October  ist,  1864 

ASSETS 

Loans  and  discounts $809,730.94 

United  States  bonds 441,500.00 

Furniture  and  fixtures 689.50 

Cash  resources: 

Due  from  banks   -  -        -        $197,252.42 

Checks  for  clearinghouse   -        -       38,216.40 
Cash  on  hand   -        -        -        -  446,350.83  681,819.65 

Si. 933.740.09 

LIABILITIES 

Capital  stock -        -  $600,000.00 

Surplus  fund 407.26 

Other  undivided  profits 66,752.88 

Circulation  notes  from  Comptroller    $330,000.00 

Less  amount  on  hand          -        -            10,000.00  320,000.00 

Deposits 946,579.95 

$1,933,740.09 

STATEMENT  OF  CONDITION 
October  9,  1869 

assets 

Loans  and  discounts $2,381,957.79 

United  States  bonds  ......         767,050.00 

Furniture  and  fixtures 312,885.05 

Cash  resources: 

Due  from  banks  -        -        -       $312,135.74 
Checks  for  clearing  house    -        -    232,069.57 

Cash  on  hand     -  -        -        -        555.872-53       1,100,077.84 

$4,561,970.68 
liabilities 

Capital  stock $1,000,000.00 

Surplus  fund 200,000.00 

Other  undivided  profits 72,712.88 

Circulation  notes  from  Comptroller        -        -        -  597,270.00 

Deposits 2,691,987.80 

$4,561,970.68 


Appendices  201 


STATEMENT  OF  CONDITION 
December  27,  1872 

ASSETS 

Loans  and  discounts $2,493,063.06 

United  States  bonds         - 675,800.00 

Building,  furniture  and  fixtures           -        -        .        .  264,361.38 
Cash  resources: 

Due  from  banks  -        -        -        -    $549,058.04 

Cash  on  hand    -        -        -        -          921,152.55  1,470,210.59 

$4,903,435-03 
LIABILITIES 

Capital  stock $1,000,000.00 

Surplus  fund    - 300,000.00 

Other  undivided  profits 204,959.15 

Circulation  notes  from  Comptroller    $602,300.00 

Less  amount  on  hand        -        -        -        14,315.00  587,985.00 

Dividend 250.00 

Deposits 2,810,240.88 

$4,903,435-03 

STATEMENT  OF  CONDITION 
December  26,  1873 

ASSETS 

Loans  and  discounts $3,051,649.53 

United  States  bonds        -..-..  737,388.66 

Real  estate,  furniture  and  fixtures      .        -        .        -        264,361.38 
Cash  resources: 

Due  from  banks         -        -        -       $479,221.85 
Checks  for  clearing  house     -  282,552.16 

Cash  on  hand     -        -        -        -       1,038,927.92      1,800,701.93 

$5,854,101.50 
liabilities 

Capital  stock        --------  $1,000,000.00 

Surplus  fund    -        -        - 500,000.00 

Other  undivided  profits       ------  139,722.96 

Circulation  notes  from  Comptroller        -        -        -  574,030.00 

Dividend      ---------  40.00 

Deposits    -        - 3,640,308.54 

$5,854,101.50 


202   The  First  National  Bank  of  Chicago 


STATEMENT  OF  CONDITION 
December  31, 1874 

ASSETS 

Loans  and  discounts    -------   $4,088,426.92 

United  States  bonds         ------  684,955.26 

Real  estate,  furniture  and  fixtures       -        -        -        .       264,415.38 
Cash  resources: 

Due  from  banks         -        -        -       $848,488.91 
Checks  for  clearing  house     -        -    371,535.03 
Cash  on  hand      -        -        -        -         790,589.26 

Due  from  United  States  Treasurer      56,115.00      2,066,728.20 

$7,104,525.76 

LIABILITIES 

Capital  stock        --------  $1,000,000.00 

Surplus  fund    --------  600,000.00 

Other  undivided  profits 49,489.98 

Circulation  notes  from  Comptroller        -        -        -  465,070.00 

Dividend 50,010.00 

Deposits   ---------  4,939,955.78 

$7,104,525.76 
STATEMENT  OF   CONDITION 
December  12,  1879 

ASSETS 

Loans  and  discounts $6,730,846.31 

United  States  bonds -  492,982.70 

Other  bonds  and  stocks            -----  219,306.84 

Real  estate,  furniture  and  fixtures      -        -        -        -  203,690.65 
Cash  resources: 

Due  from  banks        -        -  $1,947,222.72 

Checks  for  clearing  house     -  412,492.36 

Cash  on  hand    -        -        -        -    1,734,325.51 

Due  from  U.  S.  Treasurer    -              6,500.00  4,100,540.59 

$11,747,367.09 
liabilities 

Capital  stock        -        -        - $1,000,000.00 

Surplus  fund 750,000.00 

Other  undivided  profits        ------  377,882.89 

Circulation  notes  from  Comptroller        -        -        -  59,197.00 

Dividend      - 110.00 

Deposits 9,560,177.20 

$11,747,367-09 


Appendices 


203 


STATEMENT  OF  CONDITION 
December  20,  1884 

ASSETS 


Loans  and  discounts 

United  States  bonds     - 

Other  bonds  and  stocks 

Bank  building       .        .        .        . 

Cash  resources: 

Checks  for  clearing  house 

Cash  on  hand 


LIABILITIES 


Capital  stock    - 

Surplus  fund 

Other  undivided  profits 

Deposits 


$10,068,871.00 

80,600.00 

544,850.00 

500,000.00 

8,283,339.00 
§19,477,660.00 


$3,000,000.00 
400,000.00 
350,607.00 

I5.727,o53-oo 

§19,477,660.00 


STATEMENT  OF  CONDITION 
December  ii,  1889 

ASSETS 


Loans  and  discounts 

United  States  bonds     - 

Other  bonds  and  stocks 

Bank  building      -        .        .        - 

Cash  resources: 

Checks  for  clearing  house 

Cash  on  hand 


§15,803,617.00 

57,200.00 

881,550.00 

500,000.00 

-     12,357,180.00 

$29,599,547.00 
liabilities 

Capital  stock     --------  3,000,000.00 

Surplus  fund 1,500,000.00 

Other  undivided  profits -  797,107.00 

Deposits 24,302,440.00 

§29,599,547.00 


204  The  First  National  Bank  of  Chicago 


STATEMENT  OF   CONDITION 
December  19,  1894 

ASSETS 

Loans  and  discounts        ------  $17,884,431.00 

United  States  bonds     ------  778,636.00 

Other  bonds  and  stocks           -----  1,605,378.00 

Real  estate,  furniture,  and  fixtures     -        -        -  -        675,000.00 

Cash  resources: 

Checks  for  clearing  house  )  x,  -,-,,-  ^.x  ^^ 

Cash  on  hand         ^             S           '        '        '  '4.725.24i.oo 

$35,668,686.00 

LIABILITIES 

Capital  stock        --------  3,000,000.00 

Surplus  fund    --------  3,000,000.00 

Other  undivided  profits -  316,135.00 

Deposits           -        -        - 29,352,551.00 

$35,668,686.00 


STATEMENT  OF  CONDITION 
December  2,  1899 

ASSETS 

Loans  and  discounts        ------     $24,824,263.00 

United  States  bonds    - -        627,719.00 

Other  bonds  and  stocks  -----         3,766,203.00 

Cash  resources: 

Checks  for  clearing  house  j      ....    19017,738.00 
Cash  on  hand  )  ^'^  '  '-^ 

$49,135,923.00 
liabilities 

Capital  stock           -        - $3,000,000.00 

Surplus  fund        -        - -  2,000,000.00 

Other  undivided  profits 505,854.00 

Deposits      -        - 43,630,069.00 

$49,135,923.00 


Appendices  205 


STATEMENT  OF   CONDITION 
April  30,  1902 

ASSETS 

Loans  and  discounts $45,192,862.53 

United  States  bonds  (par  value)  -        -        -  1,549,030.00 

Other  bonds  and  stocks  (market  value)  -        -        6,820,608.96 

Cash  resources: 

Due  from  banks  (Eastern  ex.)  -    $14,067,980.08 
Checks  for  clearing  house    -  2,373,712.28 

Cash  on  hand     -        -        -        -       17,441,007.33 
Due  from  United  States  Treasurer      119,000.00 

34 ,  00 1 ,  699.69 

$87,564,201.18 

LIABILITIES 

Capital  stock  paid  in $5,000,000.00 

Surplus  fund 2,000,000.00 

Other  undivided  profits 1,768,892.94 

Discount  collected  but  not  earned       -        -        -  268,596.52 

Interest  accrued  on  interest-bearing  certificates     -  5,738.61 

United  States  bond  account         .        -        -        -  200,000.00 

Circulation  notes  received  from  Comptroller  $993,500.00 
Less  amount  on  hand  -        -        -        -  202,810.00 

790,690.00 


Dividends  unpaid 3,654.00 

Deposits       -        - 77,526,629.11 

$87,564,201.18 


INDEX 


Aiken,  Edmund,  51,  ^j,  55,  57,  58,  61, 
62,  1.13.  136.  i93>  194- 

Aiken  &  Norton,  51,  52,  53,  54. 

Allen,  Benjamin  F.,  66,  69,  157,  158, 
193- 

Allerton,  Samuel  W.,  51.  53,  57,  58,  76, 
77,  8s,  92,  97.  171  ■  172,  193- 

Atlas  National  Bank,  110. 

Baker,  W.T.,  112,114. 

Bank  of  America,  31,  33. 

Bank  of  Chicago,  33. 

Bank  of  Commerce,  33,  iii. 

Bank,  first,  in  the  United  States,  11, 
12. 

Bank  of  North  America,  12. 

"  Bank  War,"  the,  33,  34. 

Banking,  free,  22-25. 

Banking  in  the  Colonies,  9. 

Banking  system,  necessity  of,  5. 

Bank  01  the  United  States,  the  first, 
12,  13,  14. 

Bank  of  the  United  States,  second, 
15,  17,  18,  23,  24. 

Banks,  popular  animosity  to,  16-22. 

Banks,  State,  16,  17,  19-25;  misconcep- 
tion of  them,  19;  in  Massachusetts, 
20;  in  New  York,  20;  in  Maryland, 
20;  in  New  Jersey,  20;  in  Ohio,  20;  in 
Indiana,  20;  in  Michigan,  20;  vari- 
ous types,  21;  variety  of  experience, 
21-24;  their  weakness,  38,  39. 

Barber,  O.  C,  112. 

Barbour,  L.,  &  Day,  Calvin,  59. 

Barker,  John  H.,  95,  98,  112,  114,  173, 
193- 

Barrett,  S.  E.,  112,  114. 

Bartlett,  Adolphus  C,  loi,  119,  173, 
174. 193- 

Bartlett,  William  J.,  118. 

Biographies,  J«r(?  the  respective  names. 

Bishop,  A.  E.,  59. 

Blum,  August,'  96,  98,  no,  in,  174, 
194. 

Boisot,  Emile  K.,  93,  98,  174,  195. 

Boone,  L.  D.,  28. 

Boulton,  George  D.,  84,90,93,98,  175, 
193,  194.  195- 

Brainard,  W.  N.,  57. 

Braisted,  Edward  E.,  54,  55,  61,  194. 

Brand,  Alexander,  &  Company,  32. 

Breese,  J.  S.,  28. 

Briggs,  Clinton,  107. 

BronsoD,  Tracy  J.,  53.  57.  58. 62, 136, 193. 


Brooks,  Jane  A.,  76. 

Brown,  Frank  E.,  86,  93,  98,  175,  194, 
195. 

Brown,  W.  H.,  26. 

Brown,  William  L.,  95,  98,  112,  114, 
176,  193. 

Burch,  I.  H.,  32. 

Burch,  I.  H.,  &  Company,  32. 

Carpenter,  Augustus  A.,  79,  92,  95,  118, 
119,  15S,  IS9,  193- 

Chase,  Samuel  P.,  20,  36,  40,  42,  43. 

Chicago  banks  in  1872,  67,  68. 

Chicago  Bank,  33. 

Chicago  Clearing  House  Association. 
60. 

Chicago,  early  banking  in,  26-35;  the 
State  Bank  of  Illinois  in,  26,  27; 
other  State  banks  in,  33-3>;  con- 
ditionsat  outbreak  of  Civil  War, 49, 
50;  in  1863,51;  designation  as  cen- 
tral reserve  city,  81. 

Chicago  Marine  and  Fire  Insurance 
Company,  27,  28,  32. 

Circulating  medium,  variety  of,  in 
colonial  times,  6;  after  the  Revolu- 
tion, 8. 

City  Bank  of  London,  67. 

Clarke,  J.  Coe,  32. 

Collamer,  Senator,  44. 

Continental  Congress,  experiences  ol 
the,  8,  II. 

Connell,  Charles  J.,  107, 109. 

Conover,  Charles  H., 93,  gH,  loi,  159, 193. 

Coolbaugh,  William  F.,  107,  log. 

Coolbaugh  &  Co.'s  Bank,  55. 

Corwith,  Nathan,  112. 

Crane,  D.  E.,  59. 

Crosbv,  Isaac,  193. 

Crosby,  W.  H.,  59. 

Crumbaugh,  Frederick,  64,  137,  193. 

Culver,  George  N.,  76. 

Cummings,  Columbus  R.,  no. 

Cummings,  D.  Mark,  95,  98,  112,  114, 
176,  177,  193. 

Curtis,  Charles  H.,  76. 

Curtis  &  Tinkham,  32. 

Dallas,  Secretary  of  the  Treasury,  14, 
42. 

Deering,  William,  117,  118,  119. 

Depreciation  of  currency,  6,  7,  10,  11. 

Dewey,  David  B.,  112. 

Dickinson.  Edward,  102,  118,  119,  177, 
194. 


207 


2o8 


Index 


Dividends,  statement  of,  196-198. 

Dixon,  Arthur,  n8,  119. 

Doolittle,  H.,  49. 

Double  standard,  the,  8. 

Dow,  Asa,  112. 

Dows,  David,  112. 

Dupee,  John,  118. 

Dwight,  J.  H.,  112. 

Eckhart,  B.  A.,  118,  119. 

Eddy,  D.C.,32. 

Eldridge,  Isaac,  76. 

Ellsworth,  James  W.,  iii. 

Exchange  Bank,  33. 

Fairbank,  Nathaniel  K.,  76,  112. 

Fargo,  James  C,  53,  56.  160,  161,  193. 
194. 

Farmers'  and  Mechanics'  Bank,  32. 

Farwell,  John  V.,  107,  no. 

Farwell,  Simeon,  118. 

Field,  Cornelius  R.,  61,  63,  161,  162, 
194. 

Financial  conditions  in  the  colonies,  6, 
7,  8;  after  the  Revolution,  8. 

Financial  strength,  importance  of,  3. 

First  colonial  bank,  5,  9, 

First  National  Bank  of  Chicago,  49-104; 
organization  of,  50-55;  earliest  rec- 
ord, 52;  original  articles  of  associa- 
tion, 52,  53;  incorporators,  53;  first 
organization,  53;  capital  stock,  53, 
54;  inauguration  of  business, 54;  first 
statement, 55;  removal,  56;  action  on 
loans,  58;  increase  in  capital,  58,  59, 
65,  73,  78,  95;  stockholders,  early, 
53.  57.  59.  60;  death  of  President 
Aiken,  61;  election  of  President 
Nickerson,  61;  removal  to  building 
corner  State  and  Washington  Sts., 
62;  descriptionof  it,  62, 63;  election 
of  Lyman  J.  Gage  as  cashier,  63,  64. 
revision  of  by-laws,  64-66;  the  great 
fire,  66;  growth,  70;  third  building, 
71-73;  recognition  of  employees,  73, 
74,78;  dissolution  of  the  first  asso- 
ciation. No.  8 ;  reorganization  as 
No.  2670,  76;  incorporators,  76;  cap- 
ital, 76;  articles  of  association,  76, 
77;  directors  and  officers,  77;  rein- 
auguration  of  business,  77;  increase 
of  capital,  78;  sale  of  old  building, 
78;  election  of  officers,  78,  84,  93, 
95,  98;  lease  of  quarters,  78;  office 
r  rrangements,  79, 80;  cash  prizes  to 
employees,  81;  bond  and  foreign  de- 
partments, 81;  resignation  of  Presi- 
dent Nickerson,  82-84;  election  of 
Lyman  J.  Gage  as  president,  84; 
subscription  to  Columbian  Expo- 
sition, 85;  depression  of  1895,86; 
address  to  stockholders,  87,  88; 
clearing-house  certificates,  88,  89; 
resignation  of  President  Gage  and 
his  appointment  as  Secretary  of  the 


Treasury, 89, 90;  resumptionof  bank 
presidency  by  Samuel  M.  Nicker- 
son, 90;  growth  of  institution,  90, 91; 
establishment  of  pension  bureau, 
92;  retirement  of  Director  Gray, 
92-93;  resignation  of  President 
Nickerson,  92;  absorption  of  Union 
National  Bank,  93-98;  increase  in 
stock,  95;  election  of  officers,  98; 
separation  of  foreign  exchange  and 
bond  business,  98;  Clerks'  Savings 
Association,  98;  magnitude  of  busi- 
ness, 99;  absorption  of  the  Metro- 
politan National  Bank,  99-102;  elec- 
tion of  officers,  101,102;  magnitude 
of  the  bank,  102;  its  field  and  in- 
fluence, 103,  104;  the  new  bank 
building,  125-129;  description,  127, 
128;  statements,  55,  57, 59,  60,  63,  65, 
67,  6g,  79,  82,  86,  q6,  97.  100,  loi,  199- 
20;;  election  of  cfirectors,  53,  56,  57, 
58,  60, 62,  63,  64,  65,  66,  68,  6g,  70,  77, 
79,  80,  81,  S2;  dividends,  58,  60,  75, 
78,  82,  85,  91.  93.  95.  97,  98,  loi,  196. 
198. 

Forgan,  David  R.,  94,  95,  98,  in,  114, 
177.  178,  193.  194- 

Forgan,  James  B.,  85,  90,  92,  93,  98,  178, 
193.  194- 

Fox  &  Howard,  59. 

Frankenthal,  E.,  117,  119. 

Freeman,  Burt  &  Co.,  59. 

French,  L.  &  Co.,  59. 

Fuller,  O.  H.,  112. 

Fuller,  William  A.,  118. 119. 

Gage.  Lyman  J.,  64,  65,  68,  76,  77,  78, 
84, 162,  166, 193,  194. 

Gallatin,  Albert,  14.,  42. 

Gallup  &  Hitchcock,  59. 

Gardin,  John  E.,  93,  98,  178,  195. 

Getty,  H.  H..  112. 

Gillett,  Charles  N.,  93,  98,  179,  194. 

Glover,  S.  J.,  59. 

Gold  Act,  the,  9. 

Grannis,  W.  C.  D.,  109,  no. 

Grav,  Franklin,  D.,  60,  61,  62,63,  76,77. 
78,  92,  93,  166,  168. 

Gray,  Moses,  W.,  76. 

Grey,  C.  F.,  112. 

Grey,  Marshall  &  Co.,  59. 

Griffin  &  Vincent,  32. 

Grimes,  J.  W.,  112. 

Grundy  County  Bank  of  Morris,  49. 

Hall,  E.  G.,  56,  57.  58,  65,  138.  139.  193- 

Hamilton,  Alexander,  8,  12,  42. 

Harvey,  T.  W.,  n7. 

Hayes,  F.  W.,  117. 

Hide  and  Leather  National  Bank,  in. 

Higgins,  George  W.,  76. 

Hipwell,  W.  O.,  no,  in. 

Hitchcock,  Charles,  66.  139,  140. 

Hitchcock,  Howard  H.,  101,  118,  119, 
179.  194- 


Index 


209 


Hoge,  Holmes,  84,  93,  g8,  179,  180,  194. 

Hooper,  Mr.,  43. 

Howard,  Samuel  G.  D.,  53,  57,  58,  60, 
140,  141,  193. 

Howard,  William  D.,  112. 

Hubbard,  Gordon  S.,  26,  27. 

Hutchinson,  Benjamin  P.,  51,  53,  54, 
57,58,62,141,193. 

Hurd,  A.,  57. 

Illinois  State  Bank,  50. 

Illinois,  State  Banks  in,  24, 26, 34,  35,  49. 

Ives,  George  A.,  109,  no. 

Indiana,  State  Bank  of,  20. 

Jackson,  Andrew,  16,  17. 

Jetferson,  Thomas,  13. 

Jeffery.  E.T.,ii8, 119. 

Jones  &  Patrick,  32. 

Kay,  William  B.,  60. 

Kean,  Samuel  A.,  117. 

Keen,  William  B.,  59. 

Keith,  Edson,  118. 

Keith,  Elbridge  G.,  loi,  117,  119,  180, 
193- 

Kelley,  David,  no,  in.  112,  114. 

Kennedy,  George  N.,  ^2- 

Kent,  S.  A.,  iiS. 

Kimball,  William  W.,  76. 

Kimbark,  S.  D.,  59. 

Kingman,  Henry  M.,  78,  84,  142,  194. 

Kinzie,  John  H.,  26. 

Kirk,  59. 

Knox,  John  J.,  77. 

Lake,  Richard  C,  no. 

Land  banks,  colonial,  9,  10. 

Lawrence,  Edward  F.,  65,  76,  77,  91, 
143.  145,  193- 

Lewis,  Henry  B.,  62,  64,  145,  146,  193. 

Marine  Bank  of  Chicago,  32,  49. 

Martin,  S.  K.,  112. 

May,  H.  N.,  112. 

May,  Max,  98,  180,  181,  195. 

McCulloch,  Hugh,  44,  54. 

McGuire,  E.  J.  H.,  no. 

McLaren,  John,  m,  114. 

McPherson,  John,  59. 

McVickar,  Professor  John,  42. 

Merchants'  and  Mechanics'  Bank,  33. 

Merchants'  Savings  Loan  and  Trust 
Co.,  50. 

Merchants'  Loan  and  Trust  Company, 
64. 

Metropolitan  National  Bank  of  Chi- 
cago, consolidation  with  the  First 
National  Bank, 99-102;  statements, 
100;  its  history,  117-122;  its  organi- 
zation, 117;  directors  and  officers, 
117-119;  growth,  119;  removals,  120; 
statements,  120-122  ;  dissolution, 
122. 

Mississippi  Marine  and  Fire  Insurance 
Co.,  32. 

Mitchell,  Alexander,  29,  31. 

Monetary  standard,  importance  of,  6. 


Morris,  Robert,  12. 

Morris,  Nelson,  66,  76,  77,  98,  181,  182, 

193- 

Morris,  Sarah,  76. 

Moore,  William,  60. 

Munger,  A.  A.,  112. 

Munger,  Wesley,  107. 

Munn,  Charles  A.,  log. 

Murray  &  Brand,  31. 

National  Banking  Act,  fundamental 
principle  of,  20:  history  of,  36-46; 
motives  for,  36-40;  development  of 
the  idea,  40-42;  opposition  to  it,  40- 
44;  first  moved  July  n,  1S62,  43;  en- 
acted February  25,  1S63,  44;  revised 
J  une  3, 1864,  44;  subsequent  amend- 
ments, 44-45;  effects  of  the  law,  45; 
discussion  of,  in  Chicago,  50-51. 

National  Bank  statistics,  46. 

National  Currency  Act,  see  National 
Banking  Act. 

National  Safe  Deposit  Company,  72, 
78. 

Newberry  &  Burch,  32. 

Nickerson,  Matilda  P.,  76. 

Nickersou,  Roland  C,  76,  85,  93,  16S, 
193. 

Nickerson,  Samuel  M.,  51,  53,  54,  57,  58, 
62,  65,  82,  92;  shareholder,  76;  di- 
rector, 77;  election  as  president, 
61:  desire  to  resign  as  president,  82; 
final  resignation,  83;  resumes  pres- 
idency, 90;  director  under  new  or- 
ganization, 97;  biography,  182-185; 
as  bank  official,  193,  194. 

Oakley,  W.C,  no. 

Odell,  James  W.,  112. 

OdelUJohn  J.  P.,  109,  no. 

Orr,  Arthur,  118. 

Paine,  Seth,  33. 

Panic  of  1837,  29;  of  1857,  34;  of  1S73,  68; 
of  189=;,  86. 

Pearson,  D.  K.,  118. 

Peckham,0rville,8i,  82,84,98,  185,  193, 

195- 
Pennsylvania  Bank,  The,  12. 
Phillips,  William  B.,  60. 
Pike,  Eugene  S.,  80,  98,  185,  186,  193. 
Porter,  Henry  H.,  63,  65,  76,  77,    84, 

168,  i6g,  193. 
Powers,  Heman  G.,  107. 
Pratt,  Laurin  G.,  112. 
Preston,  David,  117. 
Preston,  William  D.,  117,  118,  119. 
Preston,  Kean  &  Company,  119. 
Producers'  Bank  of  McLeansboro,  49. 
Quirk,  D.  L.,  112. 
Rand,  E.  D.,  112. 

Ream,  Norman  B.,  82,  98,  186,  iSi,  193. 
Reaper's  Bank  of  Fairfield,  50. 
Rice,  Byron,  51,  53,  57.  58,  63,  146,  147, 

193- 
Richards,  Crumbaugh  &  Shaw,  59. 


2IO 


Index 


Richmond,  Alonzo,  59 

Roath,  S.  B.,  57,  76. 

Ruxton  &  Co.,  49. 

Ryerson,  Martin,  59. 

Sample,  Magdelina  P.,  76. 

Sanford,  George  P.,  76. 

Sawyer,  Edward  C,  76. 

Sawyer,  Harry  C,  76. 

Sawyer,  Henry  E.,  76. 

Schmitt,  Charles  J.,  61, 148,  194. 

Secession,  effects  of,  38-40,  42. 

Scammon,  J.  Young,  32. 

Scottish  Illinois  Land  and  Investment 

Co.,  28. 
Seymour,  T.  H.,  57. 
Shaw,  Gilbert  B.,  117. 
Shaw,  Theodore  A.,  76. 
Sharp,  J.  S.  &  Co.,  59. 
Shepard,  Henry  M.,  57. 
Sherman,  John,  43,  44,  46,  62. 
Sherman,  John  B.,  53,  58,  60,  148,  149, 

193- 
Singer,  Horace  M.,  57,  69,  76,  77,  81, 149, 

150-  193.    , 
"Smith's  Bank,"  31. 
Smith,  George,  28,  29,  33. 
Smith,  George  T.,  76,  91-  94.  98, 187, 188, 

193- 
Smith,  George  &  Company,  29,  32. 
Smith,  S.  H.,6o. 
Smith,  Thos.  P.,  76. 
Sound  currency,  necessity  of,  35. 
Spoor,  John  A.,  95,  98, 112,  114,  193. 
Statements  of  condition,  199-20;. 
Strachan  &  Scott,  29. 
Street,  Richard  J.,  76,  78,  84,  93,  98, 188, 

194.  195- 
Suflolk  Bank  System,  20. 
Swift,  Elijah,  32. 
Swift,  R.  K.,  32. 

Sycamore  Bank  of  Sycamore,  49. 
Symonds,  Henry  R.,  64,67,77,78,84,85, 

150,151, 193, 194. 
Talcott,  Mancel,  57,  60,  62,  69,  80,  151, 

152,  193- 
Talcott,  Marv  H.,  76. 
The  Chicago  City  Bank,  33. 
The  Commercial  Bank,  33. 
The  Farmers'  Bank,  33. 
The  Union  Bank,  33. 
Thompson,  Daniel,  64,  66, 107,  152, 154, 

193- 


Thorne,  W.  C,  114. 

Tillinghast,  59. 

Tinkham,  Edward  I.,  32. 

Treasury  Bank  of  Griggsville,  50. 

Tucker,  Bronson  &  Company,  32. 

Union  i?ank  of  Boston,  49. 

Union  National  Bank  of  Chicago,  con- 
solidation with  the  First  National 
Bank,  94;  sta*:ements,  97,  112,  113; 
organization,  107;  earliest  directors 
and  officers,  107;  its  capital,  109; 
officers  and  directors,  109-111; 
absorption  of  Hide  and  Leather 
National  Bank  and  Bank  of  Com- 
merce, III;  removals,  113;  dissolu- 
tion, 114. 

United  States,  early  banking  in,  3-18; 
natural  wealth  of,  3;  increase  in 
wealth  of,  4. 

Walker,  George  C,  57,  62,  64,  169,  170, 
193- 

Walworth,  Charles  M.,  iii. 

War  of  1812,  14. 

Ware,  Henry  A.,  117,  118. 

Watson,  William  J.,  loi,  118,  119,  188, 
189,  193- 

Webster,  Daniel,  15. 

Webster,  George,  62,  63,  65,  154,  155, 

193- 
Webster  &  Baxter,  59. 
Western  Marine  &Fire  Insurance  Co., 

50. 
Wetmore,  Frank  O.,  93,  98,  189,  195. 
Wheeler,  Augustus  W.,  59,  60,  194. 
Wheeler,  Calvin  T.,  107, 109,  no. 
Williams,  George  T.,  60. 
Williams,  John  E.,  112. 
Williams,  John  W.,  !;7,  76. 
Wilmarth,  Henry  M.,  57,69,  76,  77,  80, 

156,  193. 
Wilson,  C.  L.  &  Co.,  59. 
Wilson,  William  J.,  76. 
Winston,  F.  S.,  114. 
Wisconsin  Fire  and  Marine  Insurance 

Company,  20,  29,  31. 
Wisconsin,  laws  to  restrain  banking  in, 

22. 
Woley  James  D.,  98,  189,  195. 
Woodward,  James  L.,  117,  118 
Young,  Otto,  93,  94,  98,  189,  190,  193. 


